CRSC for Regular Retirement -- SFC

RonG

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CASE.

I retired in 2013 with 21yrs of active duty. My initial VA rating was at 70%. In 2017 Mar I was awarded 100%. I just file for CRSC and received 20% for May 14 - Sep 16 and 70% for Aug 16 thru current date. I was also High 3 but I was wanting to know the estimate for my CRSC if you can assist thanks

ESTIMATE/EXPLANATION.


Hello SFC,

1. It appears you had a regular retirement since you did not mention a disability retirement nor a DoD disability retirement percentage.
Regular retirement is commonly called "20 years active duty retirement."

2. Since you have a regular retirement, you are eligible for CRDP which is shown on page two of your DFAS RAS.

3. You said, "My initial VA rating was at 70%. In 2017 Mar I was awarded 100%. I just file for CRSC and received 20% for May 14 - Sep 16 and 70% for Aug 16 thru current date. "

-- You will not receive CRSC for May 2014 thru Sep 2016 since you ready received CRDP for that period. Also, if you did want CRSC for that period, your retired pay would be reduced by the amount of VA comp @ 70%, but receive CRSC only at the rate of VA comp @ 20%. You would lose a large amount of money.

--You will not receive CRSC for August 2016 (or October since you said you had 20% thru Sep 16) thru current month @ 70% since you already received CRDP for that period (see page 2 of DFAS RAS). Also, if you did want CRSC for that period, your retired pay would be reduced by the amount of VA comp at 100%, but receive CRSC only at the rate of VA comp @ 70%. You would lose a large amount of money in this scenario too.

4. I am a regular retiree too and have VA comp @ 100% and CRSC @ 100%. My retired pay is reduced by the amount of VA compensation = zero retired pay remaining. I receive CRSC in the full amount of my former retired pay.

5. I should mention that sometimes a person having a situation such as yours will choose CRSC even though it pays much less as I explained above. I did so for a couple of years for tax purposes since I have other income besides VA comp and retired pay. However, I was giving up only about $300 in choosing CRSC; my tax benefit was several hundred dollars more. Your case would have to involve a huge tax benefit (i.e.l, major income from a 3rd or more source) to be beneficial.

Ron
 
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RonG

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PEB Forum Veteran
Lifetime Supporter
Registered Member
Some comments about the computation of CRSC for a Regular Retirement

1. Retirees who choose CRSC must waive retired pay in the amount of VA compensation received. Often, the reduction results in zero retired pay left over.

2. There really isn't a computation for CRSC for regular retirees; the VA compensation tables are used for the amounts
See 2020 Veterans disability compensation rates | Veterans Affairs <---LINK

3. Although the retired pay must be reduced by the amount of VA compensation, the CRSC amount (using the VA comp tables) might not replace the total amount waived/reduced.
Example using 100% VA comp and 60% CRSC, Veteran with spouse: The veteran's retired pay would be reduced by $3000+ VA compensation amount; however, the CRSC would provide only $1,234.68 as replacement.

4. Many regular retirees are eligible for CRDP. My opinion regarding CRDP and CRSC if one is eligible for both:
--If the CRSC rating is the same as the VA rating: Choose CRSC
--If the CRSC rating is less than the VA rating: Choose CRDP

5. The DFAS will automatically pay the higher amount upon approval of CRSC. The retiree can change it if they prefer the lower amount.

Ron
 
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