Survivor Benefits and CH 61 Reservists eligible for non-regular retirement (20 year letter)

J

JethroDuCaine

PEB Forum Regular Member
Registered Member
Imagine a Reservist/Guardsmen who joined up right after high school (age 18). After 20 good years (with a mix of inactive and active time) they turn 38 and receive their 20 year letter.

At that point they must make an election for Reserve Component Survivor Benefit Program (RCSBP) -- or receive an automatic election if they don't.

Now imagine -- 2 years later -- at age 40, they end up going through IDES and end up on the PDRL: their RCSBP election is voided and they must make a new election for SBP.

So, from age 40 to age 60 -- they (or rather their spouse/children) are covered by whatever SBP election was made (assuming it was made).

At age 60, they would be eligible apply for non-regular retirement and -- as part of that application -- would make an election for RCSBP that would cover them going forward.


QUESTION:

What happens at the point the SM becomes eligible for non-regular (reserve) retirement (in this case at age 60) IF THEY DON'T APPLY for non-regular retirement?

Do they stop receiving CH 61 pay? Would SBP continue?
 
CRSC/CRDP QUESTION:

Assuming such a reservist was entitled to CRSC -- would there be any reason to apply for non-regular retirement?
 
JethroDuCaine said:
CRSC/CRDP QUESTION:

Assuming such a reservist was entitled to CRSC -- would there be any reason to apply for non-regular retirement?
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If you max out compensation with CRSC there is no additional benefit for qualifying for CRDP later on.
 
From my experience, Provis is correct if you max out your CRSC. If it's to your advantage to get CRDP, you will need to apply for non-regular retirement to qualify for CRDP. However, once you apply for the non-regular retirement, you will get notified that since you have a CH 61 retirement, you do not qualify for non-regular retirement (pay wise). That means your SBP will continue to be applied at your CH 61 rate. Once HRC has sent your non-regular retirement information to DFAS, DFAS will a work the CRDP pay. But, as Provis stated, if you max out on CRSC then there's no benefit of CRDP for you.
 
4SEAM said:
From my experience, Provis is correct if you max out your CRSC. If it's to your advantage to get CRDP, you will need to apply for non-regular retirement to qualify for CRDP. However, once you apply for the non-regular retirement, you will get notified that since you have a CH 61 retirement, you do not qualify for non-regular retirement (pay wise). That means your SBP will continue to be applied at your CH 61 rate. Once HRC has sent your non-regular retirement information to DFAS, DFAS will a work the CRDP pay. But, as Provis stated, if you max out on CRSC then there's no benefit of CRDP for you.
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In my wife's situation she would net less compensation. Her chapter 61 pension has a combat related unfitting condition. That means all of her income such as chapter 61 pension amount left after VA offset is not subject to federal income taxes. If she did apply for her reserve retirement that retirement would be subject to income taxes which would mean her net compensation would be less.
 
My CH 61 pension has combat related, unfitting conditions so my retirement is not subject to tax but I still had to apply for non-regular retirement for DFAS to recognize I was eligible for CRDP. Even though I applied for non-regular retirement, I still kept the CH 61 retirement and not the non-regular retirement because once I applied for non-regular retirement, they recognized I was CH 61 so I did not have to give it up. Applying for non-regular retirement does not take away your CH 61, it's just notification to DFAS from HRC that your were qualified for your non-regular retirement; thus making you eligible for CRDP. At least that's how my situation worked. So now, I have CH 61 (non-taxable), VA (non-taxable) and CRDP reimbursement up to the amount of my longevity pay. My longevity pay was a good number so it worked for me. Since my CH 61 is non-taxable, neither is my CRDP due to my unfitting conditions being combat related. Applying for non-regular retirement was only a means to get CRDP.
 
4SEAM said:
My CH 61 pension has combat related, unfitting conditions so my retirement is not subject to tax but I still had to apply for non-regular retirement for DFAS to recognize I was eligible for CRDP. Even though I applied for non-regular retirement, I still kept the CH 61 retirement and not the non-regular retirement because once I applied for non-regular retirement, they recognized I was CH 61 so I did not have to give it up. Applying for non-regular retirement does not take away your CH 61, it's just notification to DFAS from HRC that your were qualified for your non-regular retirement; thus making you eligible for CRDP. At least that's how my situation worked. So now, I have CH 61 (non-taxable), VA (non-taxable) and CRDP reimbursement up to the amount of my longevity pay. My longevity pay was a good number so it worked for me. Since my CH 61 is non-taxable, neither is my CRDP due to my unfitting conditions being combat related. Applying for non-regular retirement was only a means to get CRDP.
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Wow that's weird. My wife's maxed out for CRSC so it doesn't matter in her case. I wonder where in the regs they get to do it that way. How they get to keep chapter 61 and just add concurrent receipt of VA compensation without the need to actually use and pay the non regular retirement compensation which is subject to taxes.
 
Probably because I was on Active Duty orders at the time I was CH 61. I was eligible for a CH 61 retirement but IAW CRDP, I had to show that I had a 20-year letter and was eligible for non-regular retirement to be eligible for CRDP. Once I submitted for NR retirement, HRC sent me notice that I was already retired under CH 61 and that would continue but they had to send that paperwork to DFAS to qualify me for CRDP. So now, I get my DOD CH 61 at 75% less my VA, then CRDP reimburses me my offset up to the amount of my longevity pay which ended up well since I retired as an E9 with over 30 years. My whole IDES process was pretty seamless, they only issue I had was the retirement points on my CH 61 retirement paperwork did not match up with my NR paperwork due to an error by my command. I had to get that corrected. The time getting it corrected caused a delay in my CRDP packet. Anyway, best wishes to you and your family.
 
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