CRSC Payment Calculation Question...

[langancpl]

CRSC Payment Calculation

I am trying to decide if I should apply for CRSC. How much will I get in total with CRSC?

I have a 100% DoD medical disability rating, a 100% VA disability rating and will most likely have a 100% CRSC rating. I have 8 years and 8 months of active duty service. I have a spouse and three children under the age of 18.

1. Gross retired pay is $4086.90/.75 = $5,449.20 or ($5449.20)75%=$4086.90
2. VA disability compensation is $3,521.79
3. $4086.90-$3,521.79= $565.11, $565.11 = residual retired pay
4. Retired pay based on YOS=8.67 x 2.5% = .21675 = service multiplier=$5449.20 x .21675 = $1181.1141

I get $565.11 from DFAS and $3,521,79 from the VA. I am stuck on the CRSC calculation.

Would I get more or less if I was approved for CRSC?

The DFAS disability retirement estimator was

Expected Monthly VA Payment $3,348.64.
Retired Pay $737.36
CRSC entitlement $442.64

Total projected Benefit is $4528.54 but I think these are old figures. I think the DFAS disability estimator was using 2016 numbers when I used it because, the VA disability compensation was $3,358.68 ($3,97.16 + $80.76 +$80.76) or close to it.

Retired pay based upon years of service (YOS)
Service multiplier = 8.67 years x 2.5% = 0.21675, 0.21675 is the service multiplier
Retired pay based on YOS=$5449.20 x .21675 = $1181.1141

Retired pay + CRSC entitlement = retired pay based upon YOS or retired pay based upon YOS - retired pay = CRSC entitlement
$1181.11 - $565.11 = $616

CRSC entitlement is $616. So I would get the following each month:

$3,521.79 + $565.11 + $616 = $4,702.90 (approximately)

In general, do I have the calculations for my particular case correct? Thank you (in advance) Ron for your help.

 

[RonG]

langancpl,

Nice job. I did not check all your figures but you have the correct concept.

"I get $565.11 [residual retired pay] from DFAS and $3,521,79 from the VA. I am stuck on the CRSC calculation. "

You determined longevity portion of retirement = 1181.11 This is your ceiling for CRSC.

The combination of residual retired pay + CRSC cannot exceed the longevity amount.

1181.11 longevity minus 565.11 = 616 CRSC

You should receive each month:
1. Residual retired pay, DFAS = 565.11
2. CRSC, DFAS = 616
3. VA comp, VA = 3,521,79

Yes, I agree with your process and result. As stated...nice job.

Ron

The DFAS CRSC calculator was last updated in 2014 and had other flaws. I thought it had been removed...it was not available the last time I looked.

 

[RonG]

langancpl,

The reference for the formula used:

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 ........ page 13

B. Reductions for periods on or after January 1, 2013.

2.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.

Ron