Hello
@Bprin10
Although I am no longer a moderator, the owner of this site apparently allowed me to keep certain tools. I found the following:
Firstly, thank you to all here that have served. I greatly appreciate all of the work done here to empower through knowledge; the IDES and VA system is...(what's the euphemism?) not perfect. Anyway, I'll get to brass-tax.
I am in the IDES system and my final VA C&P appointment (vision) is on Thursday. My C&Ps all went according to what I expected and I fully anticipate that I will have a high DoD rating and a max VA rating.
1. I am at
22 years of (all "good" AD) service
2.
I am an Army MSG/1SG (11Z) and have fully actualized my "High-36" at this rank
3. I am not married and have no children
4. The condition that placed me into IDES is a back injury (surgery required) that occured in combat, but was exacerbated through life as a senior NCO in the Infantry. I have many other claims that "should" meet the criteria for combat related, or through an instrumentality of war, but are unquestionably service connected.
After many discussions with vets in a similar line of work, and who are receiving benefits from the VA ( a couple actually are medically retired as well-they are GS employees at my current assignment), I am running into what appears to be conjecture from some of them about my potential benefits moving forward. I have searched this forum a lot, but perhaps my keywords aren't taking, or I am plagued again by knuckle-dragger syndrome (which I never discount).
BLUF: If I were to meet the 75% DOD and 100% VA threshold, what is my best course of action? At this point, I am vaguely familiar (thanks to many here; a resource not easily found elsewhere on the interwebs) with how my concurrent receipt of benefits "should" work. That said, what is the maximum benefit (in regards to taxes, specifically) if a SM over 20 would get 100% DoD and VA?
I have had more than one individual tell me that they make more than what their High-36 payout would have been, due to a medical retirement (DOD % above 75%), and they stated that they only pay federal taxes on a very small portion of their retirement, due to the high DoD disability percentage (All great guys, so I assume that they are just uninformed, but it could be my inability to understand the nuance here).
I am aware that the VA 100% payout is a tax-free entitlement, in addition to my DoD pension (CRDP), but I'd never be entitled to more compensation than my LOS retirement (55% LOS + VA entitlement 100%, correct?
In closing (and for clarity), can someone please explain to me if there is a scenario like the above stated...I do not want to be the one that is uninformed when it is my time to make a decision on my benefits and financial future.
I thank any of you kind enough to enlighten me in advance!
Comments:
1. If your DoD disability retirement is at 80% thru 100%, your disability retired pay multiplier would be 75% (the max).
2. Your retired pay in the scenario you described would be High three average base pay x 75% = retired pay under Chapter 61
3. Continuing on with that scenario: Your retired pay would be reduced by the amount of your VA compensation. If there is residual retired pay (left over from the reduction), you get to keep it.
4. Since you qualify for another type retirement (regular, 20+yrs), you will be eligible for CRDP if your VA rating is 50% or more.
5. CRDP will restore the longevity portion of the waived retired pay. In your case, that will be average high three base pay x 55% (your case) = longevity portion of retired pay
6. The combination of CRDP and residual retired pay cannot exceed the amount of the longevity retirement (if you had it).
7. Basically, you end up with all your VA compensation and the value of your longevity (22 yrs AD) retirement amount.
8. CRSC:
A Supplement to CRSC Information <---see this link for a collection of CRSC info.
9. Recommendations: Take CRSC if the approved percentage by your service is the same as your VA comp percentage. If it is less than the VA comp percentage, you likely will lose money by taking CRSC; therefore in that case, CRDP is the better choice in my opinion.
10. CRSC is non-taxable and the combination of CRSC and residual retired pay cannot exceed the longevity amount computed.
Ron