Hypothetical Situation: You make it to 20 years regular retirement during an MEB, you are found to over 50% DoD disabled and found unfit. Is your military retirement 50% or the DoD rating? I understand you get the higher of the 2.5% x years or DoD disability percentage for less than a 20 year retirement - curious what happens if you make it passed 20 years?
Good question.
One would receive the higher of the DoD percentage (example 60%) or the longevity multiplier which is 50% for 20 years AD.
The mechanics of the situation using
DoD @ 60% and
longevity multiplier of 50%:
1. In my example, your retired pay would be High three average base pay x 60% (since it is more than the 50% longevity portion) = retired pay
Note: Your retired pay regardless of longevity or DoD multiplier is reduced by the amount of VA compensation received.
Example: 3300 retied pay reduced by amount of VA comp 3000 = 300 left over/residual retired pay you would receive.
2. Assuming you have a VA rating of 50% or more you are eligible for CRDP in this scenario, not to exceed the dollar amount of the longevity portion of retired pay.
The longevity portion of retied pay is number of AD years (ex: 20) x 2.5% = longevity multiplier (ex: 50%)
High three average base pay x longevity multiplier (ex: 50%) = longevity portion or retired pay
3. Waived retired pay in this example would restored Via CRDP in the amount of the longevity portion of retired pay LESS residual retired pay (ex: 300 left over retired pay)
Example: Longevity portion of retired pay 2500; 300 residual retired pay would result in 2200 CRDP + 300 residual retired pay = 2500 total paid by DFAS
Randomly selected amounts used for the examples above. You will receive the full amount of VA compensation as well.
Ron