Hello
@Cheese1962 ,
The following is provided to show why the info requested earlier is necessary for an analysis. Obviously, it not a simple matter of just looking at a chart. Bottom line up front: The DFAS is going to automatically pay the higher of CRDP or CRSC.
Based on the limited information you have provided, here is how your disability retired pay would have been computed:
1. Your DoD disability retired pay would be the higher of:
a. 60% x average high three base pay
or
b. Your active duty equivalent (shown as "Disability Retirement" 3/4 down on the first page of your retirement orders) x 2.5% x average high three base pay
The average high three base pay is the total of your highest 36 months of pay divided by 36.
2. Your retired pay would have been reduced/waived/offset dollar for dollar in the amount of VA compensation received. Any left over (residual) retired pay you would keep.
3. CRSC if approved, would replace the reduced/waived/offset retired pay by the
LESSER of
a. Your active duty equivalent (shown as "Disability Retirement" 3/4 down on the first page of your retirement orders) x 2.5% x average high three base pay
or
b. The amount associated with the CRSC percentage approved by your service. The amount is found in the VA compensation tables.
The combination of CRSC and residual retired pay (see item 2) cannot exceed the amount determined at item 3a.
Now that you have an approved reserve/NG retirement, the following will apply:
4. Your DoD retired pay would be the higher of:
a. 60% DoD disability percentage x average high three base pay
or
b. Your active duty equivalent (shown as "Disability Retirement" 3/4 down on the first page of your retirement orders) x 2.5% x average high three base pay
The average high three base pay is the total of your highest 36 months of pay divided by 36.
5. Your retired pay will be reduced/waived/offset dollar for dollar in the amount of VA compensation received. Any left over (residual) retired pay you would keep.
6. If you choose CRSC, the same formula shown at item three above will apply.
7. If you chose CRDP, your offset retired pay will be replaced by the amount determined by the following
Your active duty equivalent (shown as "Disability Retirement" 3/4 down on the first page of your retirement orders) x 2.5% x average high three base pay
The average high three base pay is the total of your highest 36 months of pay divided by 36.
The combination of CRDP and residual retired pay (see item 2) cannot exceed the amount determined at item 4b.
Summary:
The DFAS is going to automatically pay the higher of CRDP or CRSC.
Good luck,
Ron