CRSC claim approved but entitled to $0.00

spum

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I'm a little confused on my CRSC Letter from DFAS.

I'm a chapter 61 retiree. I applied for CRSC on January 15, 2019. My claim was approved on April 8, 2019. I'm 70% PTSD and 10% Tinnitus. I received a letter from DFAS on July 2, 2019 with my CRSC entitlement calculations. I'm confused on how they calculated my entitlement. I wasn't expecting much for my CRSC pay but I definitely wasn't expecting to receive nothing at all. I attached a copy of the letter if anyone can offer an opinion. I am curious if there is anything I can do.
 

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RonG

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I'm a little confused on my CRSC Letter from DFAS.

I'm a chapter 61 retiree. I applied for CRSC on January 15, 2019. My claim was approved on April 8, 2019. I'm 70% PTSD and 10% Tinnitus. I received a letter from DFAS on July 2, 2019 with my CRSC entitlement calculations. I'm confused on how they calculated my entitlement. I wasn't expecting much for my CRSC pay but I definitely wasn't expecting to receive nothing at all. I attached a copy of the letter if anyone can offer an opinion. I am curious if there is anything I can do.
Based on the info provided, it appears to be correct. You have a significant amount of residual retired pay that limits the amount of CRSC payable (zero in your case).

The documentation you provided shows your "Service Gross Pay Amount" as $533. The Service Gross Pay Amount is the longevity portion of your retired pay.
--Active duty years x 2.5% = longevity multiplier
--High-three average base pay x 2.5% = dollar amount of longevity portion of retired pay (CRSC cannot exceed this amount)
--Your residual retired pay (after VA offset) = $1245.29
-- The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed $533. You receive zero CRSC since $1245.29 far exceeds the maximum CRSC of $533. See the excerpt from DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 below.

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DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees
B2

“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 21⁄2 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
 

Sy52

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What do you mean by residual retired pay? Also, would the "Gross Pay Amount" in the first line be what the VA is paying him before his CRSC application? It's all a bit too confusing for me.
 

RonG

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What do you mean by residual retired pay? Also, would the "Gross Pay Amount" in the first line be what the VA is paying him before his CRSC application? It's all a bit too confusing for me.
1. VA compensation is not pay; it is compensation disbursed by the VA.

2. For CH 61 retirees (and others in certain situations) the retired pay is reduced by the amount of VA compensation. Occasionally, the reduction leaves some retired pay that is payable to the retiree. That is residual (left over) retired pay.

3. Gross retired pay on a DFAS is the retired pay before any deductions, such as taxes etc.

4. CRSC is separate from VA compensation and retired pay. It is compensation, not pay. It replaces some or all of the "reduced or waived" retired pay discussed st item 2.

5. The combination of residual retired pay plus CRSC cannot exceed the dollar amount of the longevity portion of retired pay.

6. Summary:
VA compensation = from VA
Residual Retired pay = from DFAS (shown on a DFAS RAS)
CRSC = from DFAS (shown on a CRSC statement)

Ron
 

Sy52

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Thank's for clearing that up. I was trying to follow that financial regulation on the comptroller website and kept getting confused because they also use the word "gross monthly amount" in paragraph 630801. Under letter C is said something about using the VA unemployability amount. Looking at the letter that spum posted, it used the words "gross pay" and it really confused me.

I think at this point I am just getting everything confused. Below is the website where I got that regulation. Thanks

 

RonG

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Thank's for clearing that up. I was trying to follow that financial regulation on the comptroller website and kept getting confused because they also use the word "gross monthly amount" in paragraph 630801. Under letter C is said something about using the VA unemployability amount. Looking at the letter that spum posted, it used the words "gross pay" and it really confused me.

I think at this point I am just getting everything confused. Below is the website where I got that regulation. Thanks

Yes, it is confusing. BTW, I look at that source almost every day and have it bookmarked.

VA compensation with the unemployabilty rate is paid @100%. In other words, if I was 80% but also had IU, I would be paid the 100% rate.

One of the most confusing steps in the CRSC estimate is after reading the material (regs/laws) how does one get there? That is the purpose of the many requests for info for CRSC estimates you might see on this site and another where I had 8,000 posts...mainly CRSC and CRDP related.

Ron
 

Sy52

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I just wanted to make sure that I found the most up to date one online. I got it from your post.
 

spum

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Ron, Thank you very much for your reply. With that information, would I be able to collect CRSC if my VA rating was increased to 100% in which the VA compensation was more than my gross retired pay.
 

RonG

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Ron, Thank you very much for your reply. With that information, would I be able to collect CRSC if my VA rating was increased to 100% in which the VA compensation was more than my gross retired pay.
I just reviewed your situation to refresh my memory.

As you now know, you are currently not receiving CRSC because your residual retired pay exceed the maximum CRSC payable in your case.

If your VA rating was increased to a level where all your retired pay was reduced to zero; you could receive $533 in CRSC...not more under any circumstances.

Your current pay situation is shown as $2649 gross pay. 100% VA compensation would certainly cause a reduction of retired pay to zero.

The trade off seems to be:
Now you receive: 1245.29 residual retired pay + 1403.71 VA comp = 2649
With 100% VA: zero residual retired pay + 533 CRSC + >3000 VA comp = more than 3533
Note: I used 533 CRSC since that is the longevity amount...you currently have 70% or more approved for CRSC but your CRSC is limited to the longevity amount which would be true for 100% as well.

Ron
 
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