Chap 61 Medical Retirement and CRDP at age 60 question

Shane

Shane

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Here is a maybe stupid question and if anyone can shed some light on this mess.

I am a chapter 61 retiree (DEC 2013 PDRL) retired at 90% disability all caused as a direct result of armed conflict, as an O-3E.

I am 100% totally and permanently disabled by the VA.

Yes, I have a CRSC of 100%, but I get nothing for that as I am maxed out (need the Richard Star Act for that).

I have my 20-year letter and an ARPC 249-E with 23 good years. All my other time looks like this: 11 years, 08 months, 12 days (4227 points). Basic pay 30 years, 00 months, 11 days.

Here is where the fun starts….

I submit my paperwork to the US Army for reserve retirement, it is processed, and I am given a letter stating I am eligible for CRDP (perfect) and the Army sends that to DFAS.

DFAS received my eligibility for CRDP on 10-16-24 and the following actions took place on my RAS and gross pay amounts.

On 11-08-24 I received a RAS reducing my gross pay 415.00 dollars.

On 11-21-24 I received a RAS stating my CRDP amount is 155.85 dollars per month.

In the end getting CRDP caused a reduction in my gross pay of 155.85 dollars per month.



I have contacted the DFAS AskDFAS and just have gotten a run around with zero answers
 
I am in nearly the exact same boat as an O-3E PDRL combat. My numbers come out the same way. Without having the numbers in front of me at this moment, CRDP would reduce my overall pay compared to Chapter 61 longevity ceiling with no CRSC. So I will not be requesting reserve retirement when my time comes. I'm meeting with my RSO next week to verify all this.


On a side note... Did you elect VA pay with residual DoD or just DoD as both are tax free for you and I? I'm trying to see if there is any benefit or issue motivating a selection of one over the other. The only thing I can find is in the event of a divorce CRSC, DoD and VA are handled differently. Wage garnishment was another question but I have not found the answers to that.
 
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Shane said:
Here is a maybe stupid question and if anyone can shed some light on this mess.

I am a chapter 61 retiree (DEC 2013 PDRL) retired at 90% disability all caused as a direct result of armed conflict, as an O-3E.

I am 100% totally and permanently disabled by the VA.

Yes, I have a CRSC of 100%, but I get nothing for that as I am maxed out (need the Richard Star Act for that).

I have my 20-year letter and an ARPC 249-E with 23 good years. All my other time looks like this: 11 years, 08 months, 12 days (4227 points). Basic pay 30 years, 00 months, 11 days.

Here is where the fun starts….

I submit my paperwork to the US Army for reserve retirement, it is processed, and I am given a letter stating I am eligible for CRDP (perfect) and the Army sends that to DFAS.

DFAS received my eligibility for CRDP on 10-16-24 and the following actions took place on my RAS and gross pay amounts.

On 11-08-24 I received a RAS reducing my gross pay 415.00 dollars.

On 11-21-24 I received a RAS stating my CRDP amount is 155.85 dollars per month.

In the end getting CRDP caused a reduction in my gross pay of 155.85 dollars per month.



I have contacted the DFAS AskDFAS and just have gotten a run around with zero answers
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Basically you were better off with CRSC and you applied for your non regular retirement to get CRDP. That $155.85 is due to owing taxes. In your case you probably shouldn't have done anything. You were maxed out on compensation with all of it being tax free. My wife is in the same spot. Chapter 61 with combat related unfitting conditions and 100% VA and a high enough CRSC% to ensure she got all of her earned longevity and all of her VA.

So what you want is to elect CRSC. You can't get both at the same time. CRSC is tax free. CRDP is getting you the money up to your longevity earned pension back but that money is taxable.
 
Shane said:
Here is a maybe stupid question and if anyone can shed some light on this mess.

I am a chapter 61 retiree (DEC 2013 PDRL) retired at 90% disability all caused as a direct result of armed conflict, as an O-3E.

I am 100% totally and permanently disabled by the VA.

Yes, I have a CRSC of 100%, but I get nothing for that as I am maxed out (need the Richard Star Act for that).

I have my 20-year letter and an ARPC 249-E with 23 good years. All my other time looks like this: 11 years, 08 months, 12 days (4227 points). Basic pay 30 years, 00 months, 11 days.

Here is where the fun starts….

I submit my paperwork to the US Army for reserve retirement, it is processed, and I am given a letter stating I am eligible for CRDP (perfect) and the Army sends that to DFAS.

DFAS received my eligibility for CRDP on 10-16-24 and the following actions took place on my RAS and gross pay amounts.

On 11-08-24 I received a RAS reducing my gross pay 415.00 dollars.

On 11-21-24 I received a RAS stating my CRDP amount is 155.85 dollars per month.

In the end getting CRDP caused a reduction in my gross pay of 155.85 dollars per month.



I have contacted the DFAS AskDFAS and just have gotten a run around with zero answers
Click to expand...
One side note: if your chapter 61 pension amount which is exempt from taxes is greater than the combination of your VA compensation + earned longevity guard/reserve pension then there is no extra money to be had. You would fall into a fairly rare category where you get more than the common cap on compensation. That's because there is not cap on chapter 61 income other than 75% of HIGH 3. If that amount is higher you are getting more than anyone else can in all other scenarios.
 
DaveK said:
I am in nearly the exact same boat as an O-3E PDRL combat. My numbers come out the same way. Without having the numbers in front of me at this moment, CRDP would reduce my overall pay compared to Chapter 61 longevity ceiling with no CRSC. So I will not be requesting reserve retirement when my time comes. I'm meeting with my RSO next week to verify all this.


On a side note... Did you elect VA pay with residual DoD or just DoD as both are tax free for you and I? I'm trying to see if there is any benefit or issue motivating a selection of one over the other. The only thing I can find is in the event of a divorce CRSC, DoD and VA are handled differently. Wage garnishment was another question but I have not found the answers to that.
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Wage garnishment I don't know about.

Before this change I was getting a gross pay of 6622.00 minus the VA waiver of 3737.85 with no taxes taken.

After DFAS made the changes I am getting a gross of 6207.00 minus the VA waiver of 3582.00 taxable 91.00 and CRDP of 155.85.... so yes it looks like some taxes but not much. but I have no idea where they got their numbers from.
 
Thanks... And you will find the CRDP calculation is based on your actual reserve retirement (points) vs the Chapter 61 medical retirement. Chapter 61 is more comparable to active duty 20+ year retirement. You will find your reserve retirement dollar amounts listed on your last RPAM points statement. For the guard it's form NGB 23.

Chapter 61 is a formal based on high 3, points/yrs active, and longevity cap.
 
Yea I am totally lost... here is what DFAS told me :

"Your Military Retired Pay shows you are in receipt of CMRP (formerly CRDP). Which removes the VA Waiver from your Retired Pay for service connected disabilities.However, your Retired pay can only be reinstated based on what your pay would have been for years of service, therefore you will always have a VA Waiver reflecting on your account, but will not have a full VA Waiver being deducted."

This answer does not give a reason for my gross to be reduced, and if I am reading it and the law correctly my CRDP would be only in the amount for years of service. So the CRDP amount would be around 2600.00, not the 155.85 I am getting for CRDP.... And I will have have around a 1637.00 VA Waiver.

Or am I just wrong?
 
CMRP/CRDP is just a reg that permits a service member (SM) to receive concurrent pay of VA disability and DoD retirement unless the retirement is from Chapter 61. It is not a calculation of ones retirement dollar amount.

Your retirement calculation from your reserve time is solely based on your points earned, good years, 20+ completion, hitting retirement age, etc... That amount in dollar form appears on your final points form.

Just wanted to clarify this should anyone read the above statements believing CRDP is in itself a calculation when it is not.

So yes, your DoD reserve retirement amount should be based on your 4200 points (assuming all good years). And that would not equal $155 per month. It would be closer to several thousand dollars as you suggested.

Separately and unrelated you should receive the full amount of your VA disability from the VA itself due to falling under the CMRP/CRDP reg.

You can only fall under CRDP or CRSC and not both at the same time. Chapter 61 medical retirement requires the VA waiver. CMRP/CRDP permits both VA disability and DoD Reserve Retirement meaning no VA required.

So below is an estimate based on your limited information provided-

Under CMRP/CRDP (you keep both below pays)
DoD Medical Retirement - $2600~ (need more info to know the actual amount)
VA disability - $3737.85 (no dependent)




For reference...
 
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DaveK said:
CMRP/CRDP is just a reg that permits a service member (SM) to receive concurrent pay of VA disability and DoD retirement unless the retirement is from Chapter 61. It is not a calculation of ones retirement dollar amount.

Your retirement calculation from your reserve time is solely based on your points earned, good years, 20+ completion, hitting retirement age, etc... That amount in dollar form appears on your final points form.

Just wanted to clarify this should anyone read the above statements believing CRDP is in itself a calculation when it is not.

So yes, your DoD reserve retirement amount should be based on your 4200 points (assuming all good years). And that would not equal $155 per month. It would be closer to several thousand dollars as you suggested.

Separately and unrelated you should receive the full amount of your VA disability from the VA itself due to falling under the CMRP/CRDP reg.

You can only fall under CRDP or CRSC and not both at the same time. Chapter 61 medical retirement requires the VA waiver. CMRP/CRDP permits both VA disability and DoD Reserve Retirement meaning no VA required.

So below is an estimate based on your limited information provided-

Under CMRP/CRDP (you keep both below pays)
DoD Medical Retirement - $2600~ (need more info to know the actual amount)
VA disability - $3737.85 (no dependent)




For reference...
Click to expand...
We shall see on the phone with the DFAS CRDP audit department, and it has been escalated so far (1 hour on phone). So far they know it is wrong but they can't figure out why... but my estimated numbers are close to theirs.... but my RAS says something different.... yup a government operation at its best.

Got my answer... I was jumping the gun... they are processing my CRDP (that is not CRDP but VA waiver amount).... and that will show in my Jan 25 RAS. And they confirmed my numbers are very close to what they see not what was on my RAS.
 
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Shane said:
We shall see on the phone with the DFAS CRDP audit department, and it has been escalated so far (1 hour on phone). So far they know it is wrong but they can't figure out why... but my estimated numbers are close to theirs.... but my RAS says something different.... yup a government operation at its best.

Got my answer... I was jumping the gun... they are processing my CRDP (that is not CRDP but VA waiver amount).... and that will show in my Jan 25 RAS. And they confirmed my numbers are very close to what they see not what was on my RAS.
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Great news!
 
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