CRDP/CRSC open season please help

steve-0

Registered Member
Hello,
I am 100% VA and 100% CRSC. I received a letter asking me if I want to take CRSC during the open season. That letter said that I receive CRDP at 2,175.81 and my CRSC is also 2,175.81. I thought CRSC would be the right choice until I called DFAS a few times and they said I would lose over 1,600 a month if I took it. Here are my numbers.

3,805.29 Military retirement pay
3,255.87 VA
7,061.16 total pay

I would like to know the truth about CRSC, would my pay go up or down and by how much if I chose CRSC. I know of one benefit of CRSC is that it can be protect my pay in divorce. I would like to also know more about this as one day my x-wife may go after my retirement.

Thank you very much
Steve
 

gsfowler

Staff Member
PEB Forum Veteran
AFAIK your total pay will remain the same, just that some will be CRSC and tax free and the remainder of LES retirement will be taxed.

3549
 

steve-0

Registered Member
Gsfowler,
Thank you for your response.
I don’t understand The difference from CRDP and CRSC and until I do I don’t think I can accept crsc.

My numbers right now

3,805.29 Military retirement pay
3,255.87 VA
7,061.16 total pay

DFAS calculator I did right now

1,606.88 Military retirement pay
3,268.12 VA
1,954.12 CRSC
6,829.12 total pay

I would be taking a pay cut of 232.17
 

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RonG

Staff Member
PEB Forum Veteran
Registered Member
Steve,

You are comparing the figures that DFAS provided (which include known data) and figures computed using information that is either inferred or provided to the best of your ability.

I agree with gsfowler's assessment of, "...your total pay will remain the same, just that some will be CRSC and tax free and the remainder of LES retirement will be taxed."

1. CRDP for a disability retiree who also qualifies for another retirement such as "regular" 20 years or more AD:
The amount of residual retired pay plus CRDP cannot exceed the dollar amount of the longevity portion of retired pay.

640401. Special Rule for Disability Retirement

Members retired for disability under 10 U.S.C., Chapter 61, §§ 1201 through 1222 remain subject to the offset required under 38 U.S.C. §§ 5304 and 5305 for any retired pay they receive that is in excess of the amount of retired pay to which they would be entitled under any other provision of law based on service in the Uniformed Services, had they not retired for disability. Since retired pay in excess of the amount calculated for years in service is still subject to offset under the CRDP program, a member with an amount of retired pay remaining after offset of VA disability compensation, that is greater than the amount calculated for years of service, is not eligible for any increase in payment of retired pay under the CRDP program.

Here is a real case where the dollar amount of the longevity portion of retired pay was 4023.

a. Gross retired pay = 5726
b. VA compensation = 3079.47
c. A minus B = 2646.53 residual retired pay
d. Dollar amount of longevity portion of retirement = 4023
e. D minus C = 1376.47 CRDP
f. Result: DFAS pays 4023 (2646.53 residual ret pay + 1376.47 CRDP) VA pays 3079.47 TOTAL: 7102.47

Knowing the precise amount of the longevity portion of the retired pay is necessary for an accurate comparison. The disability calculator at DFAS has not been updated for at least two years, possibly more. However, it remains useful to get a general idea of entitlements.

2. CRSC for a disability retiree who also qualifies for another retirement such as "regular" 20 years or more AD:

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees

Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).

Bottom line: The same limitations described for CRDP above also apply to CRSC.

3. In closing, it appears that the gross amount you would receive for CRSC would be the same as what you receive for CRDP. CRSC is nontaxable. The choice you make during open season cannot be changed until the next open season.

Ron
 

steve-0

Registered Member
RonG,

I am already tax free based off of my disability. I was hoping CRSC would bring me a pay increase. I don’t know why two people at DFAS would say I would lose over 1600 if I took CRSC. If there is no change in pay than maybe I’ll just keep CRDP for now. It’s strange DFAS own website says you keep retirement and also get CRSC, and when I talked to them they said lose retirement, I get va and crsc, which is a major loss. I would definetly elect CRSC to protect my retirement in divorce.

My longevity portion is 3,400, if my numbers would help I would provide them

Thanks a lot

Steve
 
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RonG

Staff Member
PEB Forum Veteran
Registered Member
RonG,

I am already tax free based off of my disability. I was hoping CRSC would bring me a pay increase. I don’t know why two people at DFAS would say I would lose over 1600 if I took CRSC. If there is no change in pay than maybe I’ll just keep CRDP for now. It’s strange DFAS own website says you keep retirement and also get CRSC, and when I talked to them they said lose retirement, I get va and crsc, which is a major loss. I would definetly elect CRSC to protect my retirement in divorce.

My longevity portion is 3,400, if my numbers would help I would provide them

Thanks a lot
Steve
Questions:
A. What is the Gross Retired Pay on page one of your DFAS RAS? (Left column)

B. Is there any offset information on page one?

C. What is the amount shown as CRDP shown on page two?

  1. How much active duty time did you have (years and months)?
  2. Are you still married and have three children under 18? You mentioned last year there could be an addition.
  3. Are you rated at 100% for VA, DOD, and CRSC?
Note: $1600 is the amount of residual retired pay after the waiver/offset.
Ron
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
RonG,

I am already tax free based off of my disability. I was hoping CRSC would bring me a pay increase. I don’t know why two people at DFAS would say I would lose over 1600 if I took CRSC. If there is no change in pay than maybe I’ll just keep CRDP for now. It’s strange DFAS own website says you keep retirement and also get CRSC, and when I talked to them they said lose retirement, I get va and crsc, which is a major loss. I would definetly elect CRSC to protect my retirement in divorce.

My longevity portion is 3,400, if my numbers would help I would provide them

Thanks a lot

Steve
CRSC is never more than CRDP. However, CRSC can be less than CRDP. If your retired pay is already nontaxable, there is no reason to change except possible former spouse considerations.

Ron
 

steve-0

Registered Member
RonG,
The open season lettter says CRDP and CRSC are the same at 2,175.81.
Here are my numbers/info
21 years 11 months
Married with two kids, awaiting one more to be added
100% VA, 100% DOD, 100% CRSC
Gross pay 4900
Va waiver 1080
Net pay 3805.29
CRDP 2175.81
Thanks
Steve
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Hello Steve-O,

I took the figures you provided and could not make them fit what DFAS is telling you about your CRDP. That does not necessarily mean the DFAS CRDP is in error; it is more likely that some of the figures reported on this board are imprecise, which is understandable considering the complexity of the issue.

It has been a moving target since last November. Example: The active duty years have been reported at different times as:
--22 Years
--21 Years and 2 weeks
--21 Years and 11 months
The active duty factor is an important part of the formula in a couple of areas.

You already know what the CRDP amount is since you are receiving CRDP.

CRSC:

CRSC for a disability retiree who also qualifies for another retirement such as "regular" 20 years or more AD:

Reference: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees

Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).

-----------------

I cannot determine why DFAS contends that you will lose $1600 by taking CRSC. Neither CRDP or CRSC restores or replaces waived retired pay that is in excess of the dollar amount of the longevity portion of the retired pay. They seem to overlook that you retain the residual retired pay, but it does reduce the amount of CRSC payable. The reference at
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63, 630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees,
clearly shows that CRSC cannot exceed the total of CRSC + remaining retired pay. Note: Another limitation is that CRSC cannot exceed the amount of waived retired pay since it is a replacement for waived retired pay.

Finally, although the DFAS calculator has not been updated in a few years, it does use the principles of DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63, 630805.

Good luck,
Ron
 
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Zapata619

Registered Member
Ok I may be looking in the wrong section but I was 11B infantry for 10 years 6 months and 28 days 3 actual combat deployments,
Awarded 100% VA Disability

I receive 3606.28 a month with a wife 4 kids and one on the way. I was informed I qualify for CRSC but all the documents I have seen tell me that CRSC is "ONLY " for retired personnel.

Just trying to get some clarity on the situation, do I qualify for it or not?
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Ok I may be looking in the wrong section but I was 11B infantry for 10 years 6 months and 28 days 3 actual combat deployments,
Awarded 100% VA Disability

I receive 3606.28 a month with a wife 4 kids and one on the way. I was informed I qualify for CRSC but all the documents I have seen tell me that CRSC is "ONLY " for retired personnel.
Just trying to get some clarity on the situation, do I qualify for it or not?
One has to be retired in order to receive CRSC. CRSC replaces some or all of waived retired pay.

I assume 3606.28 a month is VA compensation.

Retirements include: regular, reserve, TERA, and disability.

Ron
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Quotation from old post without comment. “AFAIK your total pay will remain the same, just that some will be CRSC and tax free and the remainder of LES retirement will be taxed.”
The DOD Regulation that presents the laws pertaining to CRSC is at —-> LINK

Good luck,
Ron
 
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