Estimated CRSC Payment

[cil25]

I am a 32-year retired active duty E-9 with 100% va disability. I was recently approved for 60% CRSC. I am trying to figure out what changes will happen with my pay now that I have this 60% CRSC.
Note: I am also trying to submit additional records to get my migraines and TBI combat related. Any information would be appreciated.

 

[RonG]

I am a 32-year retired active duty E-9 with 100% va disability. I was recently approved for 60% CRSC. I am trying to figure out what changes will happen with my pay now that I have this 60% CRSC.
Note: I am also trying to submit additional records to get my migraines and TBI combat related. Any information would be appreciated.

Hello,

Short answer: You will lose money by taking the CRSC as a regular retiree who also qualifies for CRDP.

With CRDP in your circumstances: You receive all your retired pay and your VA compensation.

With CRSC: Your retired pay will be reduced by the amount of VA compensation received (at least 3,000). CRSC approved at 60% will replace the reduction with only the amount associated with 60% VA compensation in the tables (VA compensation Tables). You would also receive your VA comp.

Ron
Class 30, USASMA

 

[cil25]

Hello,

Short answer: You will lose money by taking the CRSC as a regular retiree who also qualifies for CRDP.

With CRDP in your circumstances: You receive all your retired pay and your VA compensation.

With CRSC: Your retired pay will be reduced by the amount of VA compensation received (at least 3,000). CRSC approved at 60% will replace the reduction with only the amount associated with 60% VA compensation in the tables (VA compensation Tables). You would also receive your VA comp.

Ron
Class 30, USASMA

Thanks for the speedy response. Will the CRSC make my retirement pay 60% tax free?

 

[RonG]

Thanks for the speedy response. Will the CRSC make my retirement pay 60% tax free?

CRSC is nontaxable. CRSC replaces some or all your waived retired pay. 60% without dependents =1,131.68

So...if your retired pay was reduced by 3000 and you selected 60% CRSC over CRDP, you would lose almost $2000.

There are other factors not discussed here. If there is residual retired pay, the combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay (which is all in your case).

Residual retired pay plus CRSC cannot exceed the dollar amount of the longevity portion of retired pay.

Ron

 

[RonG]

I would like to offer a personal view of the scenario proposed above.

I would rather eat a live Texas Horned Toad than give up $2000 by accepting CRSC.

Ron

 

[cil25]

I receive about $5700 retired pay and about $3500 VA disability pay. I always heard that CRSC would make the retirement pay partially tax free.

 

[cil25]

I would like to offer a personal view of the scenario proposed above.

I would rather eat a live Texas Horned Toad than give up $2000 by accepting CRSC.

Ron

lol. I completely agree. If it comes back that this will cut my pay I won't take it.

 

[RonG]

I have received either CRDP or CRSC since around 2006.

I did at one time accept the lower paying CRSC (at the time) because of other income I had. I determined that although I was losing DFAS money, the nontaxability of CRSC made my taxes go down considerably. It was worth it in that scenario. However, I was giving up only ~$400.


Ron

 

[RonG]

cil25,

Further explanation, regular retirement.

1. You indicated you have 32 years active duty. 75% is the maximum longevity retirement multiplier.
2. "I receive about $5700 retired pay and about $3500 VA disability pay." 5700/0.75 = 7600 high three average base pay
3. CRDP: You would receive 5700 from the DFAS and 3500 from the VA. TOTAL = 9200
4. CRSC was approved @ 60%. 60% without dependents =1,131.68 (dependent categories and number of each is unknown)
5. CRSC continued:
--5700 ret pay minus 3500 = 2200 residual retired pay
--2200 residual retired pay plus 1131.68 CRSC = 3331.68 combination of residual & CRSC paid by DFAS. VA pays 3500. 3331.68 plus 3500 = 6831.68 TOTAL

Summary:
With CRDP + VA = 9200
With CRSC + VA = 6831.68 (of that amount 1131.68 would not be taxed by DFAS and VA comp of 3500 is nontaxable as well)

Ron

Note: You indicated you provided rough figures.