Choice: Retired Pay or VA Compensation?

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[Previously posted in another thread]

Anonymous said:
"VA is not always the best route to take, especially if someone is a high ranking officer and would get paid a lot more by taking the DoD percentage."
Re: Accepting VA Compensation

I found this post while looking for something else.

The information in the cited post is unintentionally misleading.

The "high ranking officer and would get paid a lot more by taking the DoD percentage" suggests the officer declined VA compensation.

As most know, CH 61 disability retired pay is reduced by the amount of VA compensation. This is often referred to as VA Offset or VA waiver.

IF the reduction/waiver results in residual (left over) retired pay, the retiree gets to keep it.

: Retiree with $3000 retired pay and the VA compensation amount is $2000.
--Declines VA compensation results in $3000 retired pay each month, likely taxable.
--Accepts VA compensation results in $1000 residual retired pay ($3000-$2000) plus $2000 VA compensation. Total each month=$3000. VA compensation is nontaxable.

Edited to add:
Retirees eligible for CRDP (generally with 50% VA ratings or higher, plus 20 years AD or reservists with 20 good years) can receive residual retired pay plus CRDP not to exceed the dollar amount of the longevity portion of retired pay.

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