Approval CRSC Question

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MarlonC

PEB Forum Regular Member
Registered Member
I am a retired service member with a 100% VA disability rating and a 70% DoD disability retirement. My DoD retired pay is tax-free due to a determination of unfitness for continued service under the all-fail retention standards. I have recently submitted an application for Combat-Related Special Compensation (CRSC) and am requesting an assessment of the likelihood of approval based on my retirement status and supporting documentation.


In support of my CRSC claim, I submitted my Combat Action Badge (CAB) award and am claiming PTSD as a combat-related condition. I have also provided relevant medical documentation to substantiate the nexus between my diagnosed condition and qualifying combat-related events. What's my chance of getting approved?
 
If you already receive your retired pay tax free there is only one other benefit to CRSC... Former spouses can't touch it.
 
Yeah your VA offset is the difference in your longevity retirement (currently receiving) and your medical retirement percentage.

If you retired over 20 you are maxed out on compensation. If you are not over 20 you are receiving residual retirement pay. In this case you are leaving money on the table. So I am guessing you aren't over 20 years of service.

You will most likely get approved though. Just submit the completed application and the other docs. They will get your VA code sheet so no worries about getting that. You will be limited to retro pay based on date of application.
 
iamthewalrus016 said:
Yeah your VA offset is the difference in your longevity retirement (currently receiving) and your medical retirement percentage.

If you retired over 20 you are maxed out on compensation. If you are not over 20 you are receiving residual retirement pay. In this case you are leaving money on the table. So I am guessing you aren't over 20 years of service.

You will most likely get approved though. Just submit the completed application and the other docs. They will get your VA code sheet so no worries about getting that. You will be limited to retro pay based on date of application.
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Over 20 years. I'm 100% P&T, submitted a federal tax exemption requestto DFAS retirement tax-free.
 
You are maxed out in compensation then.

If you go into a PEB with over 20 years they can give you a chapter 61 retirement or rule you fit to retire... you (like me as well) received a chapter 61 retirement while being over 20 years. DFAS will always show an offset for us. You cannot receive more compensation than 100 percent disability and your longevity percentage. The offset you are seeing is the difference between your 70 percent DOD percentage and your over 20 year longevity percentage. If your pension is tax free or soon to be tax free you are maxed out in comp.
 
Just making sure I'm not missing anything: If one medically retires (CH 61) after having 20 years FAS, to the extent they receive a DoD Disability rating leading to 75% base pay, AND also are rated by VA at 100%, they will receive 75% of base pay (taxed) and 100% VA Disability tax free (roughly $4k). Correct?
 
iamthewalrus016 said:
You are maxed out in compensation then.

If you go into a PEB with over 20 years they can give you a chapter 61 retirement or rule you fit to retire... you (like me as well) received a chapter 61 retirement while being over 20 years. DFAS will always show an offset for us. You cannot receive more compensation than 100 percent disability and your longevity percentage. The offset you are seeing is the difference between your 70 percent DOD percentage and your over 20 year longevity percentage. If your pension is tax free or soon to be tax free you are maxed out in comp.
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CRSC was created to repay federal tax withholding. I am correct
 
JSS said:
Just making sure I'm not missing anything: If one medically retires (CH 61) after having 20 years FAS, to the extent they receive a DoD Disability rating leading to 75% base pay, AND also are rated by VA at 100%, they will receive 75% of base pay (taxed) and 100% VA Disability tax free (roughly $4k). Correct?
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No you are capped at your longevity percentage. So DFAS waives or offsets the difference of your DOD percentage pay and your longevity percentage pay. This is because by law you can only receive 100 percent VA comp and your longevity percentage pay either on CRSC or CRDP
 
MarlonC said:
CRSC was created to repay federal tax withholding. I am correct
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If you received a correctly coded dd214 your retirement pay should already be tax free. I am in your exact same position. Over 20 years chapter 61 retiree… I do not get my 70 percent DOD percentage in pay. I receive 52.5 percent of my high 3. After getting approved for CRSC my pension just became tax free. Of my DD214 and orders were written correctly I would not have had to apply as CRDP is tax free when you receive combat related coding on those two items.
 
iamthewalrus016 said:
If you received a correctly coded dd214 your retirement pay should already be tax free. I am in your exact same position. Over 20 years chapter 61 retiree… I do not get my 70 percent DOD percentage in pay. I receive 52.5 percent of my high 3. After getting approved for CRSC my pension just became tax free. Of my DD214 and orders were written correctly I would not have had to apply as CRDP is tax free when you receive combat related coding on those two items.
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Thank you, got it.
 
I'm not referencing CRSC. I am referencing CRDP though. Not familiar with the term "longevity percentage", but I'm assuming that's 50% at 20 years. So you are saying that even if I was awarded a high enough DoD Disability rating, which equates 75% of base pay, I'd still only be able to collect 50%, if also receiving 100% VA disability comp pay? Just wanna be clear.
 
JSS said:
I'm not referencing CRSC. I am referencing CRDP though. Not familiar with the term "longevity percentage", but I'm assuming that's 50% at 20 years. So you are saying that even if I was awarded a high enough DoD Disability rating, which equates 75% of base pay, I'd still only be able to collect 50%, if also receiving 100% VA disability comp pay? Just wanna be clear.
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Okay so CRDP is based on your longevity percentage of your high three. A traditional retirement if you will. If you also chapter 61 and receive a higher percentage than your traditional retirement… DFAS offsets or waives the difference down to your longevity percentage. My case is 21 years so 52.5 percent. My DOD med retirement percentage is 70. I do not collect 70 percent of my high three. I only receive 52.5 percent of it as DFAS has offset the 70 percent down to 52.5. You will never receive more than your longevity percentage and 100 percent VA comp.

And yes longevity percentage is 50 percent at 20 years or 2.5 percent for every whole good year. That is why I am at 52.5 for 21 years.
 
Thanks, I got it now. That said, my situation also includes not being unit vacancy promoted while in an O5 slot and if DA Board select, I was informed that if I Medically Retire, before my orders are cut, if I've been board selected, they will retire me at that rank and the medical retirement rate will be based on that ranks associated base pay, rather than my high 3 at the lower rank, which would lead to increased retirement pay, as well as retiring at the next higher grade. I know this a bit off topic, but something I found to be quite interesting. I am AGR Army National Guard and while someone is DA Board select, it doesn't guarantee promotion.
 
JSS said:
Thanks, I got it now. That said, my situation also includes not being unit vacancy promoted while in an O5 slot and if DA Board select, I was informed that if I Medically Retire, before my orders are cut, if I've been board selected, they will retire me at that rank and the medical retirement rate will be based on that ranks associated base pay, rather than my high 3 at the lower rank, which would lead to increased retirement pay, as well as retiring at the next higher grade. I know this a bit off topic, but something I found to be quite interesting. I am AGR Army National Guard and while someone is DA Board select, it doesn't guarantee promotion.
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It will always be based on high three. I was an E8 for about a month before retiring. My ID says E8 but my retirement pay is still based on the highest 36 months of my pay. This is also why they say officers that receive punishment and are reduced in rank before retirement aren't impacted. Lets say you are an O4 now... and tomorrow at a court martial are reduced to O3 but are allowed to retire. When your pay is calculated for retirement they look at every month you have served and take the 36 months you were paid the highest or most and that is the average they use.
 
iamthewalrus016 said:
It will always be based on high three. I was an E8 for about a month before retiring. My ID says E8 but my retirement pay is still based on the highest 36 months of my pay. This is also why they say officers that receive punishment and are reduced in rank before retirement aren't impacted. Lets say you are an O4 now... and tomorrow at a court martial are reduced to O3 but are allowed to retire. When your pay is calculated for retirement they look at every month you have served and take the 36 months you were paid the highest or most and that is the average they use.
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Well said @iamthewalrus016 !!! For those who have earned a regular retirement with 20 or more AFS those people are maxed out regardless of other earned retirements such as chapter 61. You can't get more than the combination of your earned longevity AKA regular retirement + VA compensation. So for most CRSC is not helpful if they earned a regular retirement regardless if they also were awarded a chapter 61 retirement since that max stays the same. The gross amount will never change.
 
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