CRSC situation

AKtrooper345

Registered Member
I know people ask a million questions, but I'd love to get some feedback on my situation so I can decide what to do.

First question is this: Is CRSC based on a specific rating for a combat-related disability or on its portion of your overall rating?
Example: My unfitting condition is narcolepsy at 80%. If I have 50% TBI that qualifies for CRSC, is it considered 50% CRSC or 10% CRSC?

IF its considered 50%, that brings me to my interesting scenario.

When I use the online Calculator for my current rating of 80% DOD, the numbers are as follows:
80_CRSC.PNG

If I drop my ratings down to 60% DOD, my numbers would be:
60_CRSC.PNG


The final pay is the same, but the CRSC is more. Due to taxes, wouldn't it be more advantageous for me to have a lower DOD rating?
 

RonG

PEB Forum Veteran
Registered Member
I know people ask a million questions, but I'd love to get some feedback on my situation so I can decide what to do.

First question is this: Is CRSC based on a specific rating for a combat-related disability or on its portion of your overall rating?
Example: My unfitting condition is narcolepsy at 80%. If I have 50% TBI that qualifies for CRSC, is it considered 50% CRSC or 10% CRSC?

IF its considered 50%, that brings me to my interesting scenario.

When I use the online Calculator for my current rating of 80% DOD, the numbers are as follows
Question one: CRSC for Chapter 61 Retirees with less than 20 years AD is the LESSER of
—dollar amount of the longevity portion of retired pay
OR
—dollar amount associated with the CRSC percentage/rate approved by the service. The VA compensation tables are used amounts.

CRSC is reduced by any residual retired pay remaining after VA offset.

The CRSC rate approved is not a portion of your overall rating; it is the rate approved by your service OR the longevity portion of retirement pay.

Different factors within the formula will change the outcome.

The rates in the calculator you used have not been updated since 2015. I rarely look at it.

Ron
 

RonG

PEB Forum Veteran
Registered Member
  1. High three: 5700
  2. DoD ret percentage' 75% max payable x 5700 = 4275
  3. Years AD: 8 x 0.025 = 20% multiplier
  4. VA comp 100% spouse & 2 children under 18: $3,352.41 + 84.69 = 3437.10
  5. 5700 x 0.20 = 1140 dollar amount of longevity portion of retirement
  6. CRSC approved at 50%: $1,026.36 + 42 = 1068.36
  7. Retired pay 4275 - 3437.10 VA offset = 837.90 residual retired pay
  8. CRSC 1068.36 - 837.90 residual retired pay = 230.46 CRSC
VA comp = 3437.10
Residual retired pay =837.90
CRSC = 230.46
Total: 4505.46


New VA comp tables used.

Ron
 

AKtrooper345

Registered Member
Ron
Thanks so much for the reply.

So if I'm understanding this correctly and I plug in numbers for 60% DOD, it would be the following:

  1. High three: 5700
  2. DoD ret percentage' 60% x 5700 = 3420
  3. Years AD: 8 x 0.025 = 20% multiplier
  4. VA comp 100% spouse & 2 children under 18: $3,352.41 + 84.69 = 3437.10
  5. 5700 x 0.20 = 1140 dollar amount of longevity portion of retirement
  6. CRSC approved at 50%: $1,026.36 + 42 = 1068.36
  7. Retired pay would be completely waived by VA Pay
  8. CRSC 1068.36
VA comp = 3437.10
CRSC = 1068.36
Total: 4505.46



If this is correct, then I would net more money from being 60% than 80% DOD due to tax exemption, would I not?

So to solve this, I would waive my DOD pay for my VA pay correct?
 

RonG

PEB Forum Veteran
Registered Member
This is accurate (your computation):
VA comp = 3437.10
CRSC = 1068.36
Total: 4505.46


Your question: If this is correct, then I would net more money from being 60% than 80% DOD due to tax exemption, would I not? Answer YES, because there is no taxable residual retired pay and CRSC is non-taxable.

So to solve this, I would waive my DOD pay for my VA pay correct? Answer: Not sure I understand your question. You must agree to waive retired pay dollar for dollar in the amount of VA compensation in order to receive VA compensation. Ninety-nine percent of those waivers are accomplished on the claim form for VA comp. In all the examples in this thread, including those by the DFAS calculator, retired pay is waived (in amount of VA comp) as I described.


Ron
 

AKtrooper345

Registered Member
Ok, thanks again Ron. I guess once approved for CRSC, I should speak to someone about seeing how to tweak the numbers. Just find it funny that it's more advantageous to have a lower DOD rating in this situation.
 

RonG

PEB Forum Veteran
Registered Member
Ok, thanks again Ron. I guess once approved for CRSC, I should speak to someone about seeing how to tweak the numbers. Just find it funny that it's more advantageous to have a lower DOD rating in this situation.
Reason: Lower DOD caused less taxable income and the waiver completely wiped it out. The CRSC increased because there was no residual retired pay to decrease it.

See my first reply for other limitations.

Ron
 

AKtrooper345

Registered Member
Is there a way to forgo the residual retired pay and get it paid as CRSC? Or to have my 80% DOD downgraded to 60%? The fact that 60% is more advantageous than 80% doesn't make any sense to me.
 

RonG

PEB Forum Veteran
Registered Member
Is there a way to forgo the residual retired pay and get it paid as CRSC? Or to have my 80% DOD downgraded to 60%? The fact that 60% is more advantageous than 80% doesn't make any sense to me.
No.

Perhaps the reason that it does not make sense to you is that different laws apply to retired pay and CRSC.

There is a law or laws pertaining to the computation of retired pay and other laws that pertain to CRSC.

Prior to the Concurrent Receipt laws of circa 2003-2004, a retiree would waive retired pay for VA comp and none of the waived retired pay was given back.

Concurrent receipt” refers to the simultaneous receipt of two types of monetary benefits: military retired pay and Department of Veterans Affairs (VA) disability compensation. Prior to 2004, existing laws and regulations dictated that a military retiree could not receive two payments from federal agencies for the same purpose. As a result, military retirees with physical disabilities recognized by the VA would have their retired pay “offset” or reduced dollar-for-dollar by the amount of their VA compensation.

I have fielded hundreds of CRDP & CRSC questions and never saw one like is presented here. It is not wrong or inappropriate...just different.

Good luck,

Ron
 

rog1682

Registered Member
Good evening. Sent in my CRSC application and it was received on 11/4/18, how long does it take to get a response? I’m medically retired USN. Thank you in advance.
 

RonG

PEB Forum Veteran
Registered Member
Good evening. Sent in my CRSC application and it was received on 11/4/18, how long does it take to get a response? I’m medically retired USN. Thank you in advance.
The Navy CRSC processing cycle is much shorter than that of the Army.
Guess: 1-3 months
You can present your question to the Navy board at [email protected]

Good luck,
Ron
 
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