Hello,
It affects the VA compensation rate which reduces retired pay.
It also affects the CRSC rate found in the VA compensation tables.
However, most Ch 61 retirees with less than 20 yrs AD do not receive the rate in the VA comp tables. They receive the dollar amount of the longevity portion of retired pay as shown in the example I provided to you earlier.
"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. "
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * November 2019
Ron