CRSC and Severance

EnlistedWarrant

Registered Member
#1
If an SM received a severance pay (instead of DOD 10%) and is getting 100% VA, can they also get CRSC if they have combat-related injuries? I looked and didn't see if taking the severance pay meant they cannot get CRSC. Thanks
 

RonG

PEB Forum Veteran
Registered Member
#2
If an SM received a severance pay (instead of DOD 10%) and is getting 100% VA, can they also get CRSC if they have combat-related injuries? I looked and didn't see if taking the severance pay meant they cannot get CRSC. Thanks
You did not see it because one of the primary requirements for CRSC is to be entitled to and/or receiving retired pay.

The purpose of CRSC is to replace some or all of the waived retired pay associated with approved combat related disabilities.

DFAS:

To qualify for CRSC you must:
  • be entitled to and/or receiving military retired pay
  • be rated at least 10 percent by the Department of Veteran’s Affairs (VA)
  • waive your VA pay from your retired pay
  • file a CRSC application with your Branch of Service
Ron
 

EnlistedWarrant

Registered Member
#3
You did not see it because one of the primary requirements for CRSC is to be entitled to and/or receiving retired pay.

The purpose of CRSC is to replace some or all of the waived retired pay associated with approved combat related disabilities.

DFAS:

To qualify for CRSC you must:
  • be entitled to and/or receiving military retired pay
  • be rated at least 10 percent by the Department of Veteran’s Affairs (VA)
  • waive your VA pay from your retired pay
  • file a CRSC application with your Branch of Service
Ron
Ron,


1st off thanks for the reply. Next, if I understand correctly this means that the SM would have to waive VA PAY. Does this mean they would only be taking the DOD pay or could they take the VA pay (only because it's usually more)? Also, I heard of a SM that took the severance and started receiving his va check without any withholdings? Thanks
 

RonG

PEB Forum Veteran
Registered Member
#4
Ron,


1st off thanks for the reply. Next, if I understand correctly this means that the SM would have to waive VA PAY. Does this mean they would only be taking the DOD pay or could they take the VA pay (only because it's usually more)? Also, I heard of a SM that took the severance and started receiving his va check without any withholdings? Thanks
I will use my situation as an example. I have a regular, 20 year retirement. I am also rated 100% by the VA.

I waive DoD retired pay dollar for dollar in the amount of VA compensation received. My VA compensation is more than my retired pay, so all of the retired pay is waived.

Approved CRSC in my case, replaces all of the retired pay. I no longer receive retired pay; I receive CRSC. I also receive VA compensation...none of which is reduced in any fashion.

One does not waive VA "pay" (actually it is compensation). Certain retirees waive retired pay in the manner I addressed above. There are many different scenarios that could affect the amount of CRSC received. Too many to list here.

Disability Separation Pay: The VA is required by law to withhold disability compensation payments for servicemembers who received a disability severance payment when they separated from the military (Chapter 61), if the VA disability compensation is for the same disability. This is to prevent a veteran from receiving duplicate benefits.

Exception: The VA will not deduct compensation pay if the military disability severance pay was received for disabilities incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Department of Defense (DoD). (Note: this must be a Line of Duty designation by the DoD to be waiverable – this is related to the CRSC rating mentioned above). This exception applies to members who were separated from the Armed Forces under Chapter 61 of title 10, United States Code, on or after January 28, 2008.

A final note regarding, "Does this mean they would only be taking the DOD pay or could they take the VA pay (only because it's usually more)?" I often read of a veteran who was told they could only have DoD pay or take the VA compensation. That is partially correct. They can accept a DoD CH 61 retirement (and I know of no authority to decline it) AND agree to receive VA compensation in lieu of the retired pay. They waive retired pay in the same manner that I explained above in my example. However, there are cases where the VA compensation does not cause a total waiver and residual retired pay remains. This results in the retiree receiving: some residual retired pay PLUS VA compensation.

Ron
 

EnlistedWarrant

Registered Member
#5
I will use my situation as an example. I have a regular, 20 year retirement. I am also rated 100% by the VA.

I waive DoD retired pay dollar for dollar in the amount of VA compensation received. My VA compensation is more than my retired pay, so all of the retired pay is waived.

Approved CRSC in my case, replaces all of the retired pay. I no longer receive retired pay; I receive CRSC. I also receive VA compensation...none of which is reduced in any fashion.

One does not waive VA "pay" (actually it is compensation). Certain retirees waive retired pay in the manner I addressed above. There are many different scenarios that could affect the amount of CRSC received. Too many to list here.

Disability Separation Pay: The VA is required by law to withhold disability compensation payments for servicemembers who received a disability severance payment when they separated from the military (Chapter 61), if the VA disability compensation is for the same disability. This is to prevent a veteran from receiving duplicate benefits.

Exception: The VA will not deduct compensation pay if the military disability severance pay was received for disabilities incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Department of Defense (DoD). (Note: this must be a Line of Duty designation by the DoD to be waiverable – this is related to the CRSC rating mentioned above). This exception applies to members who were separated from the Armed Forces under Chapter 61 of title 10, United States Code, on or after January 28, 2008.

A final note regarding, "Does this mean they would only be taking the DOD pay or could they take the VA pay (only because it's usually more)?" I often read of a veteran who was told they could only have DoD pay or take the VA compensation. That is partially correct. They can accept a DoD CH 61 retirement (and I know of no authority to decline it) AND agree to receive VA compensation in lieu of the retired pay. They waive retired pay in the same manner that I explained above in my example. However, there are cases where the VA compensation does not cause a total waiver and residual retired pay remains. This results in the retiree receiving: some residual retired pay PLUS VA compensation.

Ron
Ron,

Thanks for all the advice. It looks like the CRSC might be a better option than taking the Severance if low balled!!!!
 

RonG

PEB Forum Veteran
Registered Member
#6
EnlistedWarrant,

You are welcome. One should keep in mind that CRSC is not automatic. It requires a separate application to the service concerned and the subsequent approval determines the CRSC percentage.

CRSC for a Chapter 61 retiree will be the lesser of
--the dollar amount of the longevity portion of your retirement
or
--
the CRSC rate/percentage approved by your service. The value of the rate approved by your service (upon application) can be found in the VA compensation tables (e.g., if 50% and no dependents, you would search for "50%, veteran alone." That amount is $855.41.)

Any residual retried pay (see discussion above) will reduce the amount of CRSC payable to a CH 61 retiree.

Selected CRSC information sites:
DFAS: https://www.dfas.mil/retiredmilitary/disability/crsc.html
Army: https://www.hrc.army.mil/content/CRSC
Air Force: http://www.afpc.af.mil/Combat-Related-Special-Compensation
Navy/USMC:
http://www.secnav.navy.mil/mra/CORB/Pages/CRSCB/default.aspx
USCG: https://www.uscg.mil/ppc/ras/CRDP-CRSC-News.asp

Ron
 

RonG

PEB Forum Veteran
Registered Member
#7
EnlistedWarrant:

Re: "It looks like the CRSC might be a better option than taking the Severance if low balled!!!! "

CRSC for CH 61 retirees with less than 20 years AD is not a choice between two options.

1. You will not be offered Severance Pay if the DoD rating is 30% or more.
2. You will not qualify for CRSC unless you were rated 30% or more by the DoD and you agreed to accept VA compensation in lieu of retired pay.
3. CRSC replaces some or all of waived/offset retired retired pay as outlined earlier in this thread.
4. CRSC is not paid in conjunction with Severance Pay
5. CRSC requires a separate application to one's service.

Again, there is no option to choose between Severance Pay and CRSC. There will be an opportunity for you to accept VA compensation in lieu of retired pay. Occasionally some residual retired pay results and the retiree retains it.

An application for CRSC can be submitted for combat related disabilities if one has waived retired pay in order to receive VA compensation. Much of this was addressed in one of the preceding posts.

Ron
 
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