Getting conflicting info on Reserve Retirement

W

wavy4jc

PEB Forum Regular Member
Registered Member
hello all, I am getting conflicting info, so I hope someone can help.

I am a retired (2010) Army Reserve servicemember (26+ yrs) and am currently getting VA pay at 90% and received a PDRL DOD Disabilty retirement pay at 50% in 2013. SO currently, I am receiving VA Pay and DOD offset pay because my DOD Disability Pay is much higher than my VA Pay. The numbers are: VA pay: $1,942 DOD Disability: $3,987..... OFFSET: $3,987 - $1,942 = $2,045. So DFAS sends me $2,045/mo and VA sends the entire $1,942/mo for a total $3,987/mo

If I was not getting a DOD Disability retirement, I would get the VA Pay, $1,942/mo + My Reserve Retirement (that I figured out to be about $2,219/mo) when I reach 60.

SCENARIO 1: When I reach 60, will I get my VA Pay and DOD Disabilty Pay (+ CRDP) : $1,942 + $3,987 = $5,929/mo OR,

SCENARIO 2: When I reach 60, will I get my VA Pay and my regular Reserve Retirement pay: $1,942 + $2,219 = $3,987/mo

My Question: When I reach 60, WHICH scenario will apply to me? Will I keep getting the VA pay ($1,942/mo) and DOD Disability pay I am currently getting ($3,897/mo), OR, will I start getting the VA Pay ($1,942) plus my Reserve Retirement pay I will be entitled to when I reach 60 ($2,219/mo)?

In Addition, I just applied to HRC for the Reduced Age/90-day drop retirement, as I can subtract 15 months of qualified time from age 60.

Thanks for anyone who can help me clear up this confusion!!!
 
I addressed your situation in another thread earlier today. You could easily track it if you choose.

Basically:
Special Rules for Chapter 61 Disability Retirees: Members retired for disability under Chapter 61 of title 10 United States Code may be entitled to CRDP only if they have at least 20 years of service qualifying for regular or reserve retirement. Additionally, any disability retired pay that is in excess of retired pay to which that member would be otherwise entitled (i.e., for years of service) remains subject to offset and may not be restored under the CRDP program.
No Application Required: Applications for CRDP are neither required nor accepted. The Defense Finance and Accounting Service (DFAS) will determine CRDP benefits automatically. Retirees who are not receiving payments, but believe they qualify, should contact their Military Department or DFAS to determine the reason for non-payment.
Taxability: This entitlement is taxable.

With regard to what occurs with your pay upon reaching ~60 years of age (based on your info):

1. You will [probably] choose the higher DoD disability retirement.
2. You will continue to receive all your VA compensation.
3. Your DoD disability retirement pay will be reduced dollar for dollar in the amount of VA compensation received.
4. Since at that time you are eligible for CRDP, that restoration (CRDP) of waived retired pay will restore/give back the waived retired pay not to exceed the dollar amount of the longevity portion of retirement (which in the case of a reservist, is the amount a reserve retirement would pay). CRDP paid by DFAS is actually retired pay, restored. A comment on page two of your RAS will show how much CRDP you are receiving...it will be part of the gross pay on page one of the DFAS RAS.
5. CRDP does not restore waived DoD disability retired pay that is the amount in excess of the dollar amount of the longevity portion.
 
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RonG said:
I addressed your situation in another thread earlier today. You could easily track it if you chose.

Basically:
Special Rules for Chapter 61 Disability Retirees: Members retired for disability under Chapter 61 of title 10 United States Code may be entitled to CRDP only if they have at least 20 years of service qualifying for regular or reserve retirement. Additionally, any disability retired pay that is in excess of retired pay to which that member would be otherwise entitled (i.e., for years of service) remains subject to offset and may not be restored under the CRDP program.
No Application Required: Applications for CRDP are neither required nor accepted. The Defense Finance and Accounting Service (DFAS) will determine CRDP benefits automatically. Retirees who are not receiving payments, but believe they qualify, should contact their Military Department or DFAS to determine the reason for non-payment.
Taxability: This entitlement is taxable.

With regard to what occurs with your pay upon reaching ~60 years of age (based on your info):

1. You will [probably] choose the higher DoD disability retirement.
2. You will continue to receive all your VA compensation.
3. Your DoD disability retirement pay will be reduced dollar for dollar in the amount of VA compensation received.
4. Since at that time you are eligible for CRDP, that restoration (CRDP) of waived retired pay will restore/give back the waived retired pay not to exceed the dollar amount of the longevity portion of retirement (which in the case of a reservist, is the amount a reserve retirement would pay). CRDP paid by DFAS is actually retired pay, restored. A comment on page two of your RAS will show how much CRDP you are receiving...it will be part of the gross pay on page one of the DFAS RAS.
5. CRDP does not restore waived DoD disability retired pay that is the amount in excess of the dollar amount of the longevity portion.
Click to expand...


Thanks Ron, thats the part that is conflicting. Because tbe HRC rep said the CRDP will restore what DOD Disability pay that was withheld because of receiving VA Pay. Also, if you have the time, could you further explain point #5? Thanks
 
Hello,

The HR representative was partially correct as you can see from the excerpt from the DoD I provided.

Point number 5: "CRDP does not restore waived DoD disability retired pay that is the amount in excess of the dollar amount of the longevity portion."

That is my language in explaining, "...any disability retired pay that is in excess of retired pay to which that member would be otherwise entitled (i.e., for years of service) remains subject to offset and may not be restored under the CRDP program."

Example, meets CRDP eligibility including age:

--DoD Chapter 61 retirement pay = $2000
--VA Compensation = $3000 @ 100%
--Longevity portion of retired pay = $1500
Result:
$2000 ret pay is waived due to $3000 VA comp
$1500 CRDP restoration (i.e., amt of longevity portion of ret pay)
Each month, $3000 in VA comp and $1500 in ret pay/CRDP is received. Total: $4500

Note: It is my understanding that you will have to apply for the reserve retirement (and select the DoD higher amt if you choose). Reserve retirements are not automatic. For that matter, neither are regular retirements, such as mine.
 
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