CH 61 Retiree...CRSC SSG 3 Yrs

[RonG]

Situation.

SSG/E6- for more than 3 years
13 years Active
4 years Army NG
Base pay 3481.50
90% VA
70% DoD
Spouse + 2 minor dependents

Estimate based on info available.

1. High 3 average base base not provided. Current base pay = ~3481
2. 3481 x 70% DoD retirement = 2437 retired pay
3. VA Compensation 90% with spouse and 2 children = ~ 2041 + 74 total: 2115
4. 13 yrs AD x 2.5%% =32.5% multiplier; 3481 x 32.5 % = ~1131 longevity portion of retirement
5. 1131 is less than 70% CRSC rate with spouse and 2 children under 18
6. 2437 retired pay minus 2115 VA comp rate = 322 residual retired pay
7. CRSC 1131 minus residual retired pay 322 = 809 CRSC payable

Notes:
—High three was unknown
—Only active duty years were used, it appears that some points were accumulated also. Total active duty equivalent would be necessary for accurate computation.
—Rounding was used.
—Because of missing info, this computation is imprecise

Ron

 

[whit]

Thank you- more info and a question
See attached
1. What does the 322 residual retired pay mean for me?
2. And does this mean I should expect something in the ballpark of 2437 + 809 = 3246 monthly, when CRSC is applied for and approved?

 

[RonG]

Thank you- more info and a question
See attached
1. What does the 322 residual retired pay mean for me?
2. And does this mean I should expect something in the ballpark of 2437 + 809 = 3246 monthly, when CRSC is applied for and approved?

Based on the info you provided earlier, your pay from DFAS would be:
CRSC 1131 minus residual retired pay 322 = 809 CRSC payable. Residual retried pay is the amount of retired pay left over after the waiver of retired pay in the amount of VA compensation.

You would receive 809 CRSC + 322 residual retired pay from DFAS (total 1131). You would also receive your VA comp from the VA.

I'll look at the document you provided today later on.

Ron

 

[RonG]

Your points convert to 13.8 years active duty.

REVISED

Situation.

SSG/E6- for more than 3 years
13 years Active --CORRECTED TO 13.8 YEARS
4 years Army NG
Base pay 3481.50
90% VA
70% DoD
Spouse + 2 minor dependents

Estimate based on info available.

1. High 3 average base base not provided. Current base pay = ~3481
2. 3481 x 70% DoD retirement = 2437 retired pay
3. VA Compensation 90% with spouse and 2 children = ~ 2041 + 74 total: 2115
4. 13.8 yrs AD x 2.5%% =34.5% multiplier; 3481 x 34.5 % = ~1201 longevity portion of retirement
5. 1201 is less than 70% CRSC rate with spouse and 2 children under 18
6. 2437 retired pay minus 2115 VA comp rate = 322 residual retired pay
7. CRSC 1201 minus residual retired pay 322 = 879 CRSC payable
ESTIMATED PAYMENTS EACH MONTH:
DFAS: 879 CRSC + 322 RESIDUAL RETIRED PAY = 1201
VA : 2115

Notes:
—High three was unknown
—Rounding was used.
—Because of missing info, this computation is imprecise

Ron

 

[whit]

I’m sorry I’m just not understanding one thing. My understanding is that you can’t receive both VA 2115 and DOD 2437 without 20 plus years, so I would take the higher of the two(says my PEBLO) so I’d take the DOD at 70% -2437 and CSRC 879. When I asked him about this he said “when you go through finance you’ll learn more about it” but he did say I’d get DOD and NOT VA because DoD is more. He didn’t sound very confident when saying this, in fact he said “I think” a few times.

 

[RonG]

I’m sorry I’m just not understanding one thing. My understanding is that you can’t receive both VA 2115 and DOD 2437 without 20 plus years, so I would take the higher of the two(says my PEBLO) so I’d take the DOD at 70% -2437 and CSRC 879. When I asked him about this he said “when you go through finance you’ll learn more about it” but he did say I’d get DOD and NOT VA because DoD is more. He didn’t sound very confident when saying this, in fact he said “I think” a few times.

Frankly, if you declined VA compensation you received bad info and will lose money.

By law, retirees must waive (lose) retired pay dollar for dollar in the amount of VA compensation received.
Most retirees select to receive VA compensation if eligible . It is NOT a just simple choice over which is higher because if there is residual (remaining) retired pay after the waiver, the retiree gets to keep it, plus the VA compensation. If you declined VA compensation, you are just going to receive retired pay and will not qualify for CRSC since CRSC replaces waived retired pay.

Two laws, CRDP and CRSC, restore or replace some or all of the waived retired pay. You are NOT eligible for CRDP. Combat Related Special Compensation (CRSC) is a program that was created for disability and non-disability military retirees with combat-related disabilities. It is a tax free entitlement that you will be paid each month along with any retired pay you may already be receiving.

Eligibility
To qualify for CRSC you must:

—be entitled to and/or receiving military retired pay
—BE RATED at least 10 percent by the Department of Veteran’s Affairs (VA)
—waive your VA pay from your retired pay
—file a CRSC application with your Branch of Service

A good choice would be to receive VA compensation; in fact, if the info you provided is accurate, you would have $322 residual retired pay.
By law, the total of residual retired pay plus CRSC cannot exceed the appreciate CRSC rate or the longevity portion of retirement. Generally, residual retired pay reduces the amount of CRSC payable to a CH 61 retiree who does not also qualify for a regular or RC retirement.

CRSC for CH 61 retirees is the LESSER of:
—dollar amount of longevity portion of retirement (your case)
OR
—CRSC rate approved by the service concerned (I assumed 70% since you did not cite an expected rate)
Note: CRSC is reduced by any residual retired pay.

Finally, I cannot envision any case where it would benefit a retiree to decline VA compensation. The belief that one has to choose one over the other is technically wrong. By electing VA compensation, you agree to waive retired pay equal to the amount of VA comp—that does NOT necessarily mean all retired pay is waived. With VA comp: the retired pay is reduced as I explained above. There can be residual retired pay and even CRSC. If one declines VA Compensation, they are NOT eligible for CRSC which replaces some or all of the waived retired pay.

Ron

Added: you might have misunderstood what the PEBLO said: “I’m sorry I’m just not understanding one thing. My understanding
is that you can’t receive both [issue one]VA 2115 and DOD 2437 without 20 plus years, so I would take the higher of the two(says my PEBLO) so I’d take the [issue two] DOD at 70% -2437 and CSRC 879. When I asked him about this he said “when you go through finance you’ll learn more about it” but he did say I’d get DOD and NOT VA because DoD is more. He didn’t sound very confident when saying this, in fact he said “I think” a few times.”
Comments: ISSUE ONE is true, you cannot receive VA comp @ 2115 and also receive ALL of your DOD @ 2437; however you could receive 322 residual retired pay and possibly 879 in CRSC plus VA comp of 2115. ISSUE 2 is inaccurate. You cannot receive CRSC without receiving VA comp. Your retired pay would be reduced by amount of VA comp.

Note: I assumed the approved CRSC will be at 70% since that info was missing from your presentation.

 

[RonG]

Here is a brief summary of how different senarios affect your case:
1. Decline VA compensation: You will receive only your retired pay, period.
2. Accept VA compensation: Based on info you provided, 322 residual retired pay + 2115 VA compensation + potentially 879 CRSC

If your approved CRSC by your service is in an amount less than the dollar amount of the dollar amount of the longevity portion retired pay, that would be the CRSC rate used and it would be reduced by any residual retired pay as previously discussed.

Ron

 

[whit]

Ok. GOT IT! Thank you Sir. It makes perfect sense to me now.
He told me 2437.00/DoD and CSCR without explaining how he came to the number but I think he either misspoke or I misunderstood, possibly both. Your post that begins with "Frankly" spelled it out very well.
Again thanks a lot

 

[RonG]

Glad to help...

It appears that you now understand that you are not going to keep the 2437 retired pay. You will waive all of it except 322 (based on available info).

ESTIMATED PAYMENTS EACH MONTH:
From DFAS: 879 CRSC + 322 RESIDUAL RETIRED PAY = 1201
From VA : 2115

Total each month: $3316

 

[Rich305]

Here is a brief summary of how different senarios affect your case:
1. Decline VA compensation: You will receive only your retired pay, period.
2. Accept VA compensation: Based on info you provided, 322 residual retired pay + 2115 VA compensation + potentially 879 CRSC

If your approved CRSC by your service is in an amount less than the dollar amount of the dollar amount of the longevity portion retired pay, that would be the CRSC rate used and it would be reduced by any residual retired pay as previously discussed.

Ron

You are such a blessing....thank you! I'm currently waiting now 65 days to get my back pay and been a mess trying to figure things out this forum help me out so much. we have the same scenario going on and I'm just waiting with nothing no paperwork no anything they had my dd215 14 orders and everything for over 65 days now plus the VA information and I still haven't heard anything from DFAS.

 

[RonG]

You are such a blessing....thank you! I'm currently waiting now 65 days to get my back pay and been a mess trying to figure things out this forum help me out so much. we have the same scenario going on and I'm just waiting with nothing no paperwork no anything they had my dd215 14 orders and everything for over 65 days now plus the VA information and I still haven't heard anything from DFAS.

Thank you. The issue of payments to Chapter 61 retirees is often confusing.

Ron

 

[Mattbaer38]

Ron, thank you very much for figuring out all these situations. It's very much appreciated. I will try to offer the information that is needed to estimate a figure. I fear that I will not receive a crsc payment because of a YouTube video I watched.

VA=80% $1800
DOD=70% $2800
CRSC approved=70% plus 10% (two separate injuries)
Chapter 61 retiree with 15 years 11 months

Will I receive a possible crsc payment?

 

[RonG]

Ron, thank you very much for figuring out all these situations. It's very much appreciated. I will try to offer the information that is needed to estimate a figure. I fear that I will not receive a crsc payment because of a YouTube video I watched.

VA=80% $1800
DOD=70% $2800
CRSC approved=70% plus 10% (two separate injuries)
Chapter 61 retiree with 15 years 11 months

Will I receive a possible crsc payment?

1. 2800/0.70 = 4000 high three
2. 15.92 years x 2.5% = 39.8%
3. 4000 x 39.8 = 1592 dollar amount of longevity portion of retirement pay
4. CRSC @ 70% spouse & child = ~1,566 (guess for dependents)
5. 2800 Ret Pay minus 1800 VA = 1000 residual pay
6. Item 4 is less than item 3.
7. CRSC ~1566 - 1000 residual retired pay = 566 payable

SUMMARY, EACH MONTH (based on info available):
1000 residual retired pay + 566 CRSC = 1566 DFAS
VA compensation: 1800
TOTAL: 3366

The amount of CRSC determined is reduced by the residual retired pay.


Ron

Added for future readers of this thread. The following is needed for a CRSC estimate:
A. Average high three base pay for retirement OR Gross Pay on DFAS RAS. Indicate which amount is provided.
B. DOD percentage and amount
C. Active duty or active duty equivalent years
D. VA compensation percentage, amount, and number of dependents by category
E. Approved (or expected) CRSC percentage

 

[Mattbaer38]

Thanks Ron.

My RAS is tax free.
RAS= 2882
VA waiver= 1740
RAS net= 1077

 

[RonG]

Thanks Ron.

My RAS is tax free.
RAS= 2882
VA waiver= 1740
RAS net= 1077

Based upon on new info.
1. 2882/0.70 = 4117 high three
2. 15.92 years x 2.5% = 39.8%
3. 4117 x 39.8 = 1639 dollar amount of longevity portion of retirement pay
4. CRSC @ 70% spouse & child = ~1,566 (guess for dependents)
5. 2882 Ret Pay minus 1740 VA = 1142 residual pay
6. Item 4 is less than item 3.
7. CRSC ~1566 - 1142 residual retired pay = 424 payable

SUMMARY, EACH MONTH (based on info available):
1142 residual retired pay + 424 CRSC = 1566 DFAS
VA compensation: 1740
TOTAL: 3306

 

[RonG]

Hello Matt,

For additional modifications to this estimate , please provide the following in one post:

A. Average high three base pay for retirement OR Gross Pay on DFAS RAS. Indicate which amount is provided.
B. DOD percentage and amount
C. Active duty or active duty equivalent years
D. VA compensation percentage, amount, and number of dependents by category
E. Approved (or expected) CRSC percentage

Ron

 

[RonG]

Closed
Old thread...all the questions presented were answered.

New CRSC questions and threads can be posted at Path for CRSC Forum: LINK <----

New thread in that forum:
Click on the red POST THREAD button (upper right of page).

Ron