CRSC, REDUX--Mrandmrsdalton0114, 5 May 2020

RonG

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Case.

1. Retired Gross: 2954
2. DOD percentage: 80%
3. 21 years, 5 months
4. VA compensation: 100%, spouse, one child (15), 3516.00 includes SMC-K
5. 80% CRSC
6. High 3
7. Received redux

Mike

Estimate based on your information.

a. 2954/0.75 = 3938.67 high three
b. 2954 retired pay is reduced to zero by amount of VA compensation
c. 21 years 5 months, 21.42 AD x 0.025 = 53.55% longevity multiplier before REDUX

d. Ref: 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
Reductions for periods on or after January 1, 2013.
1. Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).

Comment:

Members retiring under CSB have their retired pay multiplier decremented by one percent for each year less than 30 years of service and—after counting full years—1/12 of a percent for each month less than a full year. 10 U.S.C.S.§ 1409(b)(2). ]

e. Reduction of multiplier:
29 years and 12/12ths
minus
21 years 5/12ths = 8 years 7/12ths less than 30 years of service. 7/12 = 0.58
8.58 yrs x 0.01 = 8.58 reduction
53.55% longevity multiplier before REDUX. 53.55 minus 8.58 = 44.97 REDUX multiplier

f. Computation of CRDP:
3938.67 high three x 0.4487 = 1767.28 CRDP
Note: This is also one of the ceilings for CRSC

g. CRSC from VA compensation tables:
80% spouse and one child under 18, plus SMC-K = 1,897.80 + ~110 TOTAL: ~2008
CRSC cannot exceed the longevity portion of retired pay, REDUX in this case. CRSC is 1767.28 same as CRDP


Note: SMC-K was assumed to have been approved as combat-related too.

Ron
 

RonG

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I
Sir, does it make a differnce if im paying a va wavier?
Hello,

I think you might be referring to my item b. 2954 retired pay is reduced to zero by amount of VA compensation .

That is the waiver. Without that waiver you would not be entitled to CRDP or CRSC.

CRDP restores waived retired pay and CRSC replaces waived retired pay.

Also...
REDUX cases have a peculiar method/result of presenting their computations. Some of that is shown as a "waiver" if I remember correctly. I don't see many REDUX cases although this is the second this week. I have seen only one REDUX RAS.

I should add that all the internal computations for CRSC of any type are not shown completely on a RAS. I show my computations as I go along...to present how I determine the resulting figures...hopefully they are correct. REDUX is confusing...

I suspect you are already receiving CRDP...the CRDP amount should be shown on page two of your DFAS RAS.

Ron
 

Mrandmrsdalton0114

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Yes sir it does. Does it make a difference between medboard vs longevity retirement. If so i was medboarded.

Thank you.
 

RonG

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That was all considered in my computation. One is limited to CRDP based on the longevity (not DoD disability) amount.
Same for CRSC.

Ron
 

RonG

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CRSC is non-taxable.

Once DFAS processes your CRSC approval, they will pay you the higher of the CRDP or CRSC.
If you want to change it...you can do that by contacting them.

Ron
 

RonG

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If your CRDP is taxed, then upon receiving CRSC you would have more net pay.

Ron
 

RonG

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Glad to help. Good luck going forward.

Regards,
Ron
 
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