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Compensation question

Oxalate

PEB Forum Regular Member
Registered Member
Hi all,

I need some help with this one. I have a question when it comes to the VA waiver and my compensation. So recently, I got my DA 199, which came back 90% DOD and 100% VA TDRL. I've calculated my DoD retirement pay based on my disability rating (capped at 75%) to be $5625. My VA compensation is around $3650. From my understanding, the VA waiver means that the VA compensation will be taken from the DOD retirement dollar-for-dollar. So my thinking is that I would be left with around $1975 of my DOD retirement that will be paid to me. However, I was recently told by my PEBLO that it's one or the other no matter the difference. If I receive VA compensation, I can't receive any portion of my DOD retirement. I have 12 years in the Army, so CDRP do not apply and for argument's sake lets say CRSC does not apply.

Thanks!
 

Armypilot

Well-Known Member
PEB Forum Veteran
Registered Member
Your PEBLO is incorrect. I was medically retired and receive VA also. If your DOD retirement (capped at 75%) is more than the VA ammount (say for example, DoD is 5000 and VA is 3000), then you would still get a total of 5000, but the 3000 you get from VA is Tax free, and you only pay tax on the remaining (or residual) 2000 difference paid to you from DFAS for the DoD part.

Lot of misunderstandings out there...

Stay strong!

Harold
 

Oxalate

PEB Forum Regular Member
Registered Member
Your PEBLO is incorrect. I was medically retired and receive VA also. If your DOD retirement (capped at 75%) is more than the VA ammount (say for example, DoD is 5000 and VA is 3000), then you would still get a total of 5000, but the 3000 you get from VA is Tax free, and you only pay tax on the remaining (or residual) 2000 difference paid to you from DFAS for the DoD part.

Lot of misunderstandings out there...

Stay strong!

Harold
Thanks. Do you receive CRSC or any other similar compensation? I just want to make sure that there isn’t a condition I have to meet in order to receive my residual DOD pay.
 

RonG

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PEB Forum Veteran
Lifetime Supporter
Registered Member
Re: "However, I was recently told by my PEBLO that it's one or the other no matter the difference."

Your PEBLO should be fired for "malpractice". It is disturbing to read about incorrect information being given by officials to personnel who are leaving the service.

@Armypilot is correct.

Ron
 
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RonG

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PEB Forum Veteran
Lifetime Supporter
Registered Member
Thanks. Do you receive CRSC or any other similar compensation? I just want to make sure that there isn’t a condition I have to meet in order to receive my residual DOD pay.
Residual retired pay is simply the amount of retired pay that exceeds the amount of the VA compensation. CRSC is an entirely different matter.

CRSC: A Supplement to CRSC Information <---LINK to collection of CRSC info

Ron
 

Oxalate

PEB Forum Regular Member
Registered Member
Residual retired pay is simply the amount of retired pay that exceeds the amount of the VA compensation. CRSC is an entirely different matter.

CRSC: A Supplement to CRSC Information <---LINK to collection of CRSC info

Ron
Thanks. Yep, that’s what I was tracking, but my PEBLO and another one of her coworkers were like it’s either or. I was like wait I just thought it was a dollar-for-dollar reduction and I get the residual DOD pay. I’m super relieved. I also have a combat code on my 199 and am eligible for CRSC, but I wanted to verify the basics first.

I won’t get much for CRSC cause my residual DOD pay is fairly close to my longevity pay…maybe an $87 difference in my favor. Anyways, I’m just glad that I’ll be getting my residual DOD pay…I was getting worried I’d have to eat a $2k loss with nothing to show.
 

RonG

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PEB Forum Veteran
Lifetime Supporter
Registered Member
I won’t get much for CRSC cause my residual DOD pay is fairly close to my longevity pay…maybe an $87 difference in my favor.
Obviously you understand the ceiling. The combination of residual retired pay and CRSC cannot exceed the dollar amount of the longevity portion of retired pay.

Very good on your part.
----------------------
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 [CRSC]

B. Reductions for Periods On or After January 1, 2013

2. Members retired for disability under 10 U.S.C., Chapter 61, with less than 20 years of creditable service computed under 10 U.S.C. § 1208, and who are qualified for CRSC, on or after January 1, 2013, will have the maximum CRSC payment restrictions. The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed the amount that is equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member

Ron
 
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