CRSC question

dlz11

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Hello Team,

It’s been a while but had a CRSC question I thought you combined experts might have the answer to.

Does CRSC increase over time as pay charts increase? I’m confused about how my High 3 doesn’t change but my retirement payment increases. Do they recalculate CRSC annually? Just curious is a greater increase in VA disability vs Retirement pay could increase CRSC.

Thanks in advance!
 

dlz11

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Ugh, I feel stupid that a version of this question was just asked and answered yesterday. Apologies for the double tap!

But it’s still and interesting question as high 3 doesn’t change, oh well, I guess I’ll find out in December
 

dlz11

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So the cola percentage is applied to high 3, and current DoD pay charts are ignored? I wonder how, in the future, I would calculate the current basis. Maybe residual plus VA offset divided by .7 (my dod percentage).
 

RonG

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Ugh, I feel stupid that a version of this question was just asked and answered yesterday. Apologies for the double tap!

But it’s still and interesting question as high 3 doesn’t change, oh well, I guess I’ll find out in December
Actually, once the COLA increase is applied, your DFAS RAS will show a new gross amount of retired pay (before the VA offset).
One can take that figure and divide it by the DoD retirement percentage to determine the current high three with previous COLAs applied.
(Exception: If you retired pay was determined by the longevity multiplier, that percentage would be used rather than the DoD rate).

@chaplaincharlie is correct.

Ron
 

dlz11

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Ok awesome! I just found that and is much easier to calculate future payments. Thanks for the help!
 

RonG

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So the cola percentage is applied to high 3, and current DoD pay charts are ignored? I wonder how, in the future, I would calculate the current basis. Maybe residual plus VA offset divided by .7 (my dod percentage).
Your current CRSC on your DFAS CRSC statement x 1.087 = new CRSC rate for you.

Ron
Edited to add:
UNLESS you have been retired less than 12 months.

SEE LINK <—-
 
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dlz11

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Ok awesome! That makes it a lot easier. What I’m finding is that my residual pay has actually decreased because the retired pay went up less then VA disability pay, and I’m no wondering if SBP costs go up as well. Ultimately I know the combined total will go up but not as much as I was initially thinking.

Thanks again!
 

RonG

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Hello @dlz11

Re: “Ok awesome! That makes it a lot easier. What I’m finding is that my residual pay has actually decreased because the retired pay went up less then VA disability pay, and I’m no wondering if SBP costs go up as well. Ultimately I know the combined total will go up but not as much as I was initially thinking.”

I neglected to mention that in cases where there is residual retired pay, the combination of residual retired pay and CRSC cannot exceed the longevity amount (computation). In increase in VA comp might reduce the residual retired pay Amount.

There are many possible scenarios. Bottom line: The combination of residual retired pay and CRSC cannot exceed the longevity amount (computation).

Ron
 

BrokenArrow86

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There is another factor that I discovered last year that isn't commonly discussed. I med retired in Sep 2021.. therefor my COLA increase in 2022 was only 1.7% because DFAS has a chart on partial year COLA increases. So the 8.7% COLA this year is only for people who have been retired the full 12 months. If you had less, then you will need to look up the stepped rates in DFAS. This would also be why if you are calculating backwards, you don't see the full 5.4% from last year like me. Hope this helps!
 

RonG

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There is another factor that I discovered last year that isn't commonly discussed. I med retired in Sep 2021.. therefor my COLA increase in 2022 was only 1.7% because DFAS has a chart on partial year COLA increases. So the 8.7% COLA this year is only for people who have been retired the full 12 months. If you had less, then you will need to look up the stepped rates in DFAS. This would also be why if you are calculating backwards, you don't see the full 5.4% from last year like me. Hope this helps!
Breakdown of COLA increase for recent retirees:

LINK <—-

Ron
 

Newguy5

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When will we see the increase to both VA and CRSC? Will it be on the 12/1/2022 payments or on 1/1/2023?
 
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