Selected CRSC Information Pertaining to CRSC Computations for Chapter 61 Retirees.
Special Rules for Chapter 61 Disability Retirees: According to law, members retired for disability under Chapter 61 of title 10 United States Code must have the CRSC entitlement limited to an amount that when combined with any military retired pay remaining after offset for VA disability compensation will not exceed the retired pay they would otherwise be entitled to for retirement computed for years of service (i.e., 2 1/2 percent x years of service x pay base).
[This is the current method of computing CRSC for CH 61 retirees and the law was effective 1 January 2013.]
Other selected CRSC information, including the computation of CRSC for CH 61 retirees prior to 1 January 2013.
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63
630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees
The adjusted monthly amount specified in paragraph 630802 will be reduced according to the provisions of subparagraph 630805.A or 630805.B, whichever is applicable.
- Reduction for periods prior to January 1, 2013.
1. Members retired for disability under 10 U.S.C.,
Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 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 applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).
Example: The member described in paragraph 630802, who would have received $1,650 in retired pay had he retired for his years of service, was retired under 10 U.S.C., Chapter 61 with a disability rated at 60 percent. Thus, the member receives retired pay of $1,800 monthly (60 percent of $3,000). However, in this case, the member has a combined VA rating of 100 percent, but combat-related disabilities rated at 60 percent. The member’s current monthly VA benefit amount is $3,264, of which $1,365 is combat-related. The member has a total offset of retired pay. The maximum CRSC entitlement under paragraphs 630801 and 630802 is $1,365. The maximum CRSC entitlement will be reduced by the difference in the Chapter 61 retirement and the longevity retirement amounts, or $150 ($1,800 less $1,650). This reduction reflects the amount by which the member’s disability retired pay exceeds his or her longevity retired pay. The member’s CRSC benefit of $1,365 is reduced by $150 to $1,215. In this case, the member will receive $3,264 from the VA and $1,215 in CRSC from DoD.
2. 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. NOTE: A retired reserve member, retired under the provisions of 10 U.S.C., Chapter 61 is entitled to CRSC. The gross amount of CRSC determined under paragraph 630801 will be adjusted as required under paragraph 630802 and then further reduced under paragraph 630805.
For Reserve Component members with less than 20 years of service as determined under 10 U.S.C. § 12733, reduce the adjusted CRSC amount by the amount, if any, by which the disability retired pay exceeds the amount equal to 2½ percent times the years of creditable service determined under 10 U.S.C. § 12733 multiplied by the member's applicable retired pay base. For Reserve Component members with 20 or more years of service as determined under 10 U.S.C. § 12733, reduce the adjusted CRSC amount by the amount, if any, by which the disability retired pay exceeds the retired pay to which the member would be entitled if the member were 60 years old.
- Reductions for periods on or after January 1, 2013
1.Members retired for disability under 10 U.S.C.,
Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).
Example: The same member, as described in paragraph 630802, was retired under 10 U.S.C., Chapter 61, with a disability rated at 60 percent. Thus, the member receives retired pay of $1,800 monthly (60 percent of $3,000). However, in this case, the member has a combined VA rating of 100 percent, but combat-related disabilities rated at 60 percent. The member’s current monthly VA benefit amount is $3,264, of which $1,365 is combat-related. The member has a total offset of retired pay. Since there is no residual retired pay after offset of the full VA benefit amount, the member’s CRSC entitlement of $1,365, is fully payable as it does not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. In this case, the member will receive $3,264 from the VA and $1,365 in CRSC from DoD.
2. 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.
NOTE: A retired reserve member, retired under the provisions of 10 U.S.C., Chapter 61, is entitled to CRSC. The gross amount of CRSC determined under paragraph 630801 will be adjusted as required under paragraph 630802. For Reserve Component members with less than 20 years of service as determined under 10 U.S.C. § 12733, the CRSC amount when combined with the amount of retired pay payable to the retiree after reduction for the full VA disability compensation, if any, may not exceed the disability retired pay amount that is equal to 2½ percent times the years of creditable service determined under 10 U.S.C. § 12733 multiplied by the member's applicable retired pay base. For Reserve Component members with 20 or more years of service as determined under 10 U.S.C. § 12733, the CRSC amount when combined with the amount of retired pay payable to the retiree after reduction for the full VA disability compensation, if any, may not exceed the disability retired pay to which the member would be entitled if the member were 60 years old. C. Chapter 61 Disability Retiree Out-Year Deductions. In all cases, once established (based on date the member was first placed on either the Permanent or Temporary Disability Retirement List), the CRSC reduction amount will be increased by each increase in the retired pay cost of living allowance. It will not be re-computed using current pay tables unless the member otherwise qualifies for re-computation of retired pay by reason of recall to duty or correction of official records.
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Comments:
Those who wish to view real examples of the old computations of CRSC can look at the computations of "maparker" on this board: Pre-January 1, 2013
DFAS will be responsible for making any adjustment payments.
I limited my computations to regular retirements during the early CRSC era (on another board) and have not computed any CRSC estimates using the old method. I did submit one example to maparker almost ten years ago and found my computation was in error. I did not begin computing CH 61 CRSC until the law changed.
Ron
