Impact of VA Disability and CRSC on SBP

custerhank

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I searched the DFAS web site for an answer but could not find anything definitive. I am AD retired with a VA rating and CRSC. What impact (if any) does the reduction in my regular retirement pay have on the SBP for my wife? I was assuming those VA and CRSC amounts would be added back in for SBP computation, but the numbers in my MyPay RAS do not track.

Thanks,

Hank Whitney
Custer, South Dakota
 

RonG

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I searched the DFAS web site for an answer but could not find anything definitive. I am AD retired with a VA rating and CRSC. What impact (if any) does the reduction in my regular retirement pay have on the SBP for my wife? I was assuming those VA and CRSC amounts would be added back in for SBP computation, but the numbers in my MyPay RAS do not track.

Thanks,

Hank Whitney
Custer, South Dakota
Hello Hank,

If I understand your question correctly...

Your VA compensation has nothing to do with your SBP, unless you had previously requested the VA pay for the coverage because you did not have any retired pat remaining (one scenario...I do not know the details of your case).

If you have now waived all your retired pay (no residual retired pay remaining) and currently receive CRSC, your SBP can be paid by debit from your CRSC funds. That option began only a year or so ago.

Ron
 

RonG

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SBP Deductions, from DFAS:

--Beginning with the Survivor Benefit Plan (SBP) monthly premiums due in April of 2018, DFAS started deducting SBP recurring monthly premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the monthly premiums. This new deduction is due to a change in the law which requires DFAS to deduct SBP recurring monthly premiums from CRSC."

--"The change in the law only affects SBP recurring monthly premiums, beginning with the monthly premium due in April of 2018. It does not affect past due SBP premium amounts. DFAS is not deducting past due premiums from CRSC pay. Retirees who have past due SBP premiums are still responsible for paying the past due SBP premium amount and any interest accrued through direct remittance."

--"This change affects retirees who receive CRSC and previously paid SBP monthly premiums via direct remittance."

--"Retirees who currently have SBP premiums deducted from their Department of Veteran Affairs (VA) pay will not be affected."

Ron
 

custerhank

New Member
Registered Member
SBP Deductions, from DFAS:

--Beginning with the Survivor Benefit Plan (SBP) monthly premiums due in April of 2018, DFAS started deducting SBP recurring monthly premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the monthly premiums. This new deduction is due to a change in the law which requires DFAS to deduct SBP recurring monthly premiums from CRSC."

--"The change in the law only affects SBP recurring monthly premiums, beginning with the monthly premium due in April of 2018. It does not affect past due SBP premium amounts. DFAS is not deducting past due premiums from CRSC pay. Retirees who have past due SBP premiums are still responsible for paying the past due SBP premium amount and any interest accrued through direct remittance."

--"This change affects retirees who receive CRSC and previously paid SBP monthly premiums via direct remittance."

--"Retirees who currently have SBP premiums deducted from their Department of Veteran Affairs (VA) pay will not be affected."

Ron
Ron,

Thanks for going "above and beyond" in your responses. I see from many posts here that you are the resident expert on these things and I appreciate your time.

I should have mentioned that I am one of those "paid up" folks on SBP and have not paid premiums for several years. So no worry on deductions.

Thanks again,

Hank
 

RonG

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Hi Hank,

Thank you; there are several who patrol the PEB Forum.

Ron

Added: I just realized you are probably concerned about the base (or basis) for the SBP formula. We/I did not elect SBP when I retired back in the Middle Ages (i.e., 1991).
 
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