Hello
@JoeUSMC ,
Comments added to some of your paragraphs.
You said:
Fully understand that DoD might not be 100%. My VA claim only included the conditions referred to the PEB. My proposed VA rating is 100% so I make the assumption that DoD will be 100% if all my referred conditions are found to be unfitting. Also, all claimed conditions should be eligible for CRSC so I make the assumption that CRSC would be 100%
Does the dollar for dollar reduction in retirement pay only apply disability retirement pay? My projected disability retirement pay is $4,006.25 while my projected VA compensation is $3,711.83. With the dollar for dollar reduction would I receive $3,711.83 (not taxed) from the VA and $294.41 from DoD (taxed). Still a monthly total of $4,006.20 but most of it being tax exempt.
COMMENT ADDED:
The total amount of your retired pay is reduced by the amount of your VA compensation. Using your figures and computation, you would receive 294.41 from DFAS and 3711.83 from the VA each month.
How would the math work out if I do TERA and receive CRDP? My projected retirement pay with TERA is $2,050.20. My understanding is that I would receive the full VA Benefit of $3,711.83(not taxed) and my full retirement of $2,050.20 (taxed) for a monthly total of $5,761.83 Is this correct?
COMMENT ADDED: If you chose TERA instead of the medical retirement and the amount of retired pay is 2050.20 (your computation), you would receive 2050.20 from DFAS as CRDP (taxed) plus your 3711.83 VA compensation.
I thought I had included the information needed for CRSC calculations. sorry for leaving it out. Here it is.
1. High-3: $5,341.67
2. DoD disability percentage: 100% (projected)
3. Active duty years and months: 16 years 0 months
4. VA: 100%, $3,711.83 (spouse & 4 kids under 18)
5. Projected CRSC: 100%
6. Whether you qualify for another type retirement: Qualify for TERA - not sure if this is what you mean by other type of retirement.
7. No REDUX/CSB payment
8. No BRS
COMMENTS ADDED FOR CRSC:
Re: "My projected disability retirement pay is $4,006.25 while my projected VA compensation is $3,711.83. With the dollar for dollar reduction would I receive $3,711.83 (not taxed) from the VA and $294.41 from DoD (taxed)"
1. 16 years AD x 2.5% = 40% longevity multiplier
2. 5341.67 high three x 40% = 2136.67 longevity portion of retired pay
3. CRSC at 100% = 3711.83 (but ceiling is longevity portion of retired pay)
4. 2136.67 minus 294.41 residual retired pay = 1842.26 CRSC amount payable
5. DFAS will pay each month: 294.41 residual retired pay plus 1842.26 CRSC = 2136.67 from DFAS (VA comp is paid by VA of course)
Note: Where computations were provided by the individual concerned, those computations were used within the remarks made here.
Is it taxable? See
Defense Finance and Accounting Service > RetiredMilitary > manage > taxes > isittaxable <---LINK to DFAS
Ron