JUST GOT APPROVED FOR CRDP - GOT QUESTIONS

nwlivewire

PEB Forum Veteran
Went to MyPay and got a new "changed RAS" (Retiree Account Statement).

Here are the figures - I see no change in the total amount - so does anything else happen later? Like any backpay or anything? Or, am I limited by the gross total and this is just a bookkeeping thing where the grand total remains the same, they just adjust the numbers in the colomns.

Background: Retired APR 2012 - Chapter 61 - 70% Army - 100% P&T from the get go
Was due CRDP at time of Chapter 61 discharge (APR 2012), but didn't get until now - 6 years later.

NG with 20-year letter and finally got a verified 4 years of early age drop. Since I was age 56 3/4 at time of retirement, I was due CRDP at time of retirement in APR 2012.

I came under the "final pay" system with a little more than 13 years AD time (E-7 with 26 yrs. for pay in 2012). I just checked my HRC records and found a new additional bunch of points someone had found during this CRDP process, so I have about 13 years worth of points.

Here is what DFAS sent me thru MyPay via the changed RAS. The figures below are what I got this month (May) and what I will receive next month (June)

MAY GROSS 3618.00
JUN GROSS 3618.00

MAY VA WAIVER 2973.86
JUN VA WAIVER 2011.00

MAY TAXABLE INCOME 644.14
JUN TAXABLE INCOME 1607.00

AT THE BOTTOM OF THE RAS IT SAYS: Based on the compensation amount you receive from the Department of Veterans Affairs and your retired pay, your concurrent retirement disability pay (CRDP) amount is 963.86.

So basically, I'm wondering why my GROSS didn't change? Why did my tax-free VA monthly go DOWN by the same amount as the INCREASE in my taxable military retirement pay?

Is there anything I'm missing here?

V/R,
nwlivewire
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
You wrote:
Here is what DFAS sent me thru MyPay via the changed RAS. The figures below are what I got this month (May) and what I will receive next month (June)

MAY GROSS 3618.00
JUN GROSS 3618.00
Comment: Nothing occurred to change the gross from May to June. CRDP, is itself, retired pay (restored). It appears that all your pay for 1-30 Apr (you refer to it as "May") was DoD disability retired pay (i.e., zero CRDP). The pay for 1-31 May (you refer to it as "Jun") is made up of 963.86 CRDP and the rest is DoD disability pay.

MAY VA WAIVER 2973.86
JUN VA WAIVER 2011.00
Comment: Obviously, the difference is the 963.86 CRDP. The CRDP allows you to receive dollar amount of the longevity portion of the retired pay. Your VA compensation will not change. The amount of VA offset is reduced to 2011.00

MAY TAXABLE INCOME 644.14
JUN TAXABLE INCOME 1607.00
Comment: The taxable income is increased by the amount of CRDP, which as retired pay (restored) is taxable. There appears to be a $1 difference...possibly due to rounding. Note: If you had residual retired pay after the VA offset (before the 1-31 May pay period), that might explain the 644.14 previously taxable. There are several possible scenarios that could be related to this situation, but I think I have answered your primary questions.

AT THE BOTTOM OF THE RAS IT SAYS: Based on the compensation amount you receive from the Department of Veterans Affairs and your retired pay, your concurrent retirement disability pay (CRDP) amount is 963.86.

A Final comment: Any retro CRDP owed for prior periods will be paid after the DFAS audit. My experience was around 2-3 months (later). There is no standard time frame.

Ron
 

nwlivewire

PEB Forum Veteran
You wrote:
Here is what DFAS sent me thru MyPay via the changed RAS. The figures below are what I got this month (May) and what I will receive next month (June)

MAY GROSS 3618.00
JUN GROSS 3618.00
Comment: Nothing occurred to change the gross from May to June. CRDP, is itself, retired pay (restored). It appears that all your pay for 1-30 Apr (you refer to it as "May") was DoD disability retired pay (i.e., zero CRDP). The pay for 1-31 May (you refer to it as "Jun") is made up of 963.86 CRDP and the rest is DoD disability pay.

MAY VA WAIVER 2973.86
JUN VA WAIVER 2011.00
Comment: Obviously, the difference is the 963.86 CRDP. The CRDP allows you to receive dollar amount of the longevity portion of the retired pay. Your VA compensation will not change. The amount of VA offset is reduced to 2011.00

MAY TAXABLE INCOME 644.14
JUN TAXABLE INCOME 1607.00
Comment: The taxable income is increased by the amount of CRDP, which as retired pay (restored) is taxable. There appears to be a $1 difference...possibly due to rounding. Note: If you had residual retired pay after the VA offset (before the 1-31 May pay period), that might explain the 644.14 previously taxable. There are several possible scenarios that could be related to this situation, but I think I have answered your primary questions.

AT THE BOTTOM OF THE RAS IT SAYS: Based on the compensation amount you receive from the Department of Veterans Affairs and your retired pay, your concurrent retirement disability pay (CRDP) amount is 963.86.

A Final comment: Any retro CRDP owed for prior periods will be paid after the DFAS audit. My experience was around 2-3 months (later). There is no standard time frame.

Ron

Thank-you for your quick response!

Is there any "retro" CRDP in my situation? Or is this change just a re-accounting of numbers and there would be no backpay owed to me?

V/R,
nwlivewire
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
nwlivewire.

DFAS will perform an audit of your pay and determine how much, if any, CRDP (paid by DFAS) you are due.
If you met all the requirements for CRDP during the period you mentioned, including waiver of retired pay (VA Offset), then you likely have retro CRDP coming.

Incidentally, income is taxable in the year it is paid. So...if you were paid retro CRDP for several years, the estimated tax would be withheld by DFAS in conjunction with making payment.

Ron
 

nwlivewire

PEB Forum Veteran
nwlivewire.

DFAS will perform an audit of your pay and determine how much, if any, CRDP (paid by DFAS) you are due.
If you met all the requirements for CRDP during the period you mentioned, including waiver of retired pay (VA Offset), then you likely have retro CRDP coming.

Incidentally, income is taxable in the year it is paid. So...if you were paid retro CRDP for several years, the estimated tax would be withheld by DFAS in conjunction with making payment.

Ron
Thanks! For these past 6 years I have only rec'd the DoD retired pay - it started at 602.xx in 2012 and was COLA'ed up to 644.14 this year - AND VA Comp at the 100% rate. So I'm going to assume CRDP will go back to the very beginning month I was eligible for it in 2012 (PDRL APR 2012)?

If so, then this amount will be taxed at a sizeable percentage, but I won't have back taxes to account for. That's a relief - no back tax returns to amend.

Thanks again for your clarification.

I will apply for CRSC now and see what happens.

V/R,
nwlivewire
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
RE: "I will apply for CRSC now and see what happens."

From the limited info available, it does appear you will receive some retro CRDP from DFAS.

You probably know this, but you could have applied for CRSC once you had at least a 10% VA rating. There are other requirements as well.

CRDP and CRSC cannot be paid simultaneously; it must be one or the other.
CRDP: Taxable
CRSC: Non-taxable

Once a retiree is eligible (and approved in the case of CRSC) for both CRDP and CRSC, they must choose between the two. Once that election is made, the retiree cannot switch to the other until the next open season which is in January of each year.

Good luck,
Ron
 

nwlivewire

PEB Forum Veteran
RE: "I will apply for CRSC now and see what happens."

From the limited info available, it does appear you will receive some retro CRDP from DFAS.

You probably know this, but you could have applied for CRSC once you had at least a 10% VA rating. There are other requirements as well.

CRDP and CRSC cannot be paid simultaneously; it must be one or the other.
CRDP: Taxable
CRSC: Non-taxable

Once a retiree is eligible (and approved in the case of CRSC) for both CRDP and CRSC, they must choose between the two. Once that election is made, the retiree cannot switch to the other until the next open season which is in January of each year.

Good luck,
Ron

Yes. I understand there has to be a choice made between CRDP and CRSC - one or the other.

For others wishing to know how long this took....

CRDP packet rec'd by HRC in 15 JAN 2018.

HRC completed their portion and they directly forwarded my CRDP packet 23 JAN 2018.

After several calls to DFAS where I was repeatedly told they (DFAS) DID NOT have my packet, then, and after several more calls to HRC, I was finally able to speak with the person at HRC who actually worked on my packet. The HRC worker had their Supervisor re-send my packet through their internal system directly to a DFAS Supervisor. This was done on 02 FEB 2018. Remember, HRC has already sent them my packet, but the HRC folks had to do it again - this time supervisor to supervisor so as to assist in the stopping of the 6-year time clock with a date of sending.

02 FEB 2018 - packet sent from HRC to DFAS - Supervisor to Supervisor.

20 FEB 2018 - packet assigned to DFAS technician.

30 MAR 2018 - packet approved for CRDP by DFAS.

05 APR 2018 - I called DFAS and was told packet was approved for CRDP. Told to expect a letter in the mail within 30 days.

02 MAY 2018 - I noticed a changed/updated RAS on MyPay.

*** During this entire time, I DID NOT receive one single piece of paper from HRC or from DFAS notifying me of any status change, update or change in status or transfer of packet - NOTHING. I WAS THE ONE WHO HAD TO CALL AND CALL, TRACK EVERYTHING DOWN, TRACK EVERYONE DOWN.

ADDITIONALLY, HRC added to my packet whatever piece(s) of paper HRC needed to generate so my packet was complete for DFAS CRDP processing, but I never got that piece of paper (they never sent me a copy of it).

MOREOVER, whatever document(s) HRC has to complete in order to finalize the CRDP packet before handing it off to DFAS for processing, HRC DID NOT UPLOAD into my service records that document.

In my experience, HRC was the easy part. But once DFAS's turn comes up, it seemed like nobody knew anything, they didn't have my packet, they never received my packet - on and on it went. I was placed in a call loop - back and forth from HRC to DFAS, then DFAS back to HRC.

After the HRC Supervisor sent my packet to a DFAS Supervisor, things smoothed out in terms of accountability. DFAS had my packet and they knew they had my packet.

I was responsible for making several calls - I kept logs with date/time/who - and made notes of convo and WHEN (date) to return call DFAS again.

Just thought you may want to know what my process was like. All went reasonably well UNTIL DFAS repeatedly told me they didn't/never rec'd my packet.

It seems like accountability gets lost between HRC and DFAS.

And, HRC DOESN'T send the Veteran a copy of the paperwork HRC MUST generate and include in the Veteran's CRDP packet prior to HRC handing off the Veteran's CRDP packet to DFAS. HRC doesn't download a copy of that document into the Vet's personnel record, either.

This leaves the Veteran having to make calls and calls - and, without getting a copy of whatever paperwork HRC generates/adds to the Veteran's packet, the Veteran has no copy of those documents, either. The Vet has an incomplete copy of the CRDP packet.

What this means is that IF the Vet has to re-start this whole thing (DFAS,"We don't have your packet"), then the Veteran has to start all over again at Square One (with HRC) instead of just bypassing HRC and going directly to DFAS with a complete packet. MONTHS AND MONTHS of time lost.....

V/R,
nwlivewire
 
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RonG

Staff Member
PEB Forum Veteran
Registered Member
Thank you for sharing your experience. I was going to ask you about it for future use. This was interesting, "What this means is that IF the Vet has to re-start this whole thing (DFAS,"We don't have your packet"), then the Veteran has to start all over again at Square One (with HRC) instead of just bypassing HRC and going directly to DFAS with a complete packet. MONTHS AND MONTHS of time lost....."

Please correct me if I am wrong, but unlike CRDP for a regular retiree, you had to initiate all of the actions that finally resulted in your CRDP. In other words, you did not receive anything from HRC or elsewhere suggesting you submit documentation to start your CRDP (as a current CH 61 retiree, but met the requirements for CRDP).

I also infer that you continue to receive the higher CH 61 retired rate and the CRDP is going to restore the amount of waived retired pay that is equal to what you would receive as a non-regular retiree (NG or reserve).

There was a similar case recently presented on this website. I am confident the retiree will be interested in reading of your experience. I gave him some details related to a CRDP case I answered on another board. Your info will be helpful.

Thank you,
Ron
 

Warrior644

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PEB Forum Veteran
Registered Member
@nwlivewire; congratulations! :D

Indeed, it's pleasing to see you back on the PEB Forum! Hope all is well! :) Take care! :cool:

Thus, I quite often comment that "possessing well-informed knowledge is truly a powerful equalizer!"

Best Wishes!
 

nwlivewire

PEB Forum Veteran
Thank you for sharing your experience. I was going to ask you about it for future use. This was interesting, "What this means is that IF the Vet has to re-start this whole thing (DFAS,"We don't have your packet"), then the Veteran has to start all over again at Square One (with HRC) instead of just bypassing HRC and going directly to DFAS with a complete packet. MONTHS AND MONTHS of time lost....."

Please correct me if I am wrong, but unlike CRDP for a regular retiree, you had to initiate all of the actions that finally resulted in your CRDP. In other words, you did not receive anything from HRC or elsewhere suggesting you submit documentation to start your CRDP (as a current CH 61 retiree, but met the requirements for CRDP).

I also infer that you continue to receive the higher CH 61 retired rate and the CRDP is going to restore the amount of waived retired pay that is equal to what you would receive as a non-regular retiree (NG or reserve).

There was a similar case recently presented on this website. I am confident the retiree will be interested in reading of your experience. I gave him some details related to a CRDP case I answered on another board. Your info will be helpful.

Thank you,
Ron
Dear Ron:

About six months or so before I turned 60 in 2015, I did receive notification to apply for CRDP as a regular aged and qualifying retiree.

No. As far as I know, I never received notification from any agency to apply for CRDP under the "Early Age Drop".

I have waited until now to apply for CRDP due to other financial circumstances that were ongoing from the death of my spouse and the financial recovery I have been facing since 2010 or so. So in some respects, although I knew I could CRDP at age 60 and was given written notice to do so, I was never notified by any agency regarding the "Early Age Drop".

**********

For many years, and up until about SEP 2015, I was an active poster on this website - from Fall 2009 - Summer 2015.

It was on this website where I learned and was given expert guidance by the founder of this website, Jason Perry (Jason was my attorney for the "new" IDES), MA PARKER, and received from the MANY learned contributors, their encouragement, their humor, and witnessed from their literary sidelines, their day-to-day experiences and outcomes of their medical boards. I am so grateful for the folks who share their stuff here, for unknownst to them, their postings made me a whole better person and helped turn my life around.

All of you have been a Godsend to me and I am the better for having found you all on this website.

It was on this website that I came to understand that "knowledge is power", and how very important it is for you to have an active, participatory lean during all the battles you can have in getting your claims to the "fair and just" finish line. Med boards, VA claims, Social Security Disability claims - all of it. Know the rules and standards, be pro-active and then "set the table" so you can get that fair and just outcome (as fair and just as the system will allow anyway).

"You gotta put the hay down where the goats can eat it."

**********

I am now preparing to launch my life - begin a new chapter - by relocating for one year to Merida, Mexico. I fly on 31 May and will rent an apartment there, having received initial permission from Mexico to enter their country under their Permanent Residency VISA. Three months from now, I will be an American citizen living in Mexico and be in possession of their version of a "Green Card".

Next year, I will relocate again - this time to Thailand, where I will be enrolled in school and be using my Post 9/11 GI Bill benefits. My choices of schools are Webster University, located in Hua Hin, Thailand - or - Payap University in Chiang Mai, Thailand. I've not made a final decision yet, but my living in Mexico this year will allow me to decide, get transcripts, etc., and make proper VISA application to Thailand.

Meanwhile, I have just this month turned in my Oregon Driver's License and became a "legal and bona fide" Texas resident (Driver License and Voter ID Card). Texas DOES NOT state tax my retirements, and I also eliminate having to file an annual State tax return. This is just one less thing I have to remember to do every year (as for the Feds, we have them with us always, so no getting around that one). And before I leave for SE Asia next year, I'll return to Texas, take their motorcycle courses and get a cycle endorsement on my Texas license. That's because I'll need a scooter in Asia and will need to know how to ride and operate one safely.

Finally, I hope while I am in SE Asia that I'll be able to build a school somewhere in a rice farming community in Cambodia. 15 years ago, when I was traveling through Cambodia, I saw a desperate need for just a simple, basic building that can be used as a schoolhouse for the children of the farmers. Part of the "retro pay" on my CRDP will be used for just this purpose - if I get any (I think I will).

When I return to the States in 3-4 years, I will have completed my education, have built a one-room schoolhouse, have saved up some money, and will have had one hell of an adventure along the way. I'll return to the USA and settle in Texas (in the Hill Country I hope) and build a little house for myself where I can "age in place", and God willing, I'll be able to come and go as I please for as long as I am able to.

**********

That's my five-year plan and you just read the outline of a new chapter I'd like to write - I want to write.

I will keep you abreast on the CRDP and the subsequent CRSC thing.

Thank-you so very much for all of you - and Jason and Ma Parker - and for this website.

V/R,
nwlivewire
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
nwlivewire,

Thank you for sharing your experiences and what you see for the future. You have a great plan for the years ahead...

I "met" Ma Parker at another website ~seven years ago and learned much of what I know about CRDP and CRSC indirectly from him.

Good luck in your travels,
Ron
Texas Hill Country
 

uscbailey

Registered Member
Have a question about how much money I should expect to get in retirement. I am a reserve soldier with 13 years active service and am retiring while on active duty at a Warrior Transition Battalion. DoD 80% and VA 100% and have my 20 year letter for 20 good years in the Reserves so I qualify for CRDP. I have enough time to collect my retirement now but can't wrap my head around the formula to figure out my retirement money. If anyone can help let me know. My high three base pay is 7200.
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Have a question about how much money I should expect to get in retirement. I am a reserve soldier with 13 years active service and am retiring while on active duty at a Warrior Transition Battalion. DoD 80% and VA 100% and have my 20 year letter for 20 good years in the Reserves so I qualify for CRDP. I have enough time to collect my retirement now but can't wrap my head around the formula to figure out my retirement money. If anyone can help let me know. My high three base pay is 7200.
From the information your provided, it appears you will be accepting a CH 61 (disability) retirement and you also have a 20 good year(s) letter from the reserves.

Using that info and other factors presented in your post. I have inferred that you have not met the reserve age requirement for retirement. Your post was silent on the issue:

--Your CH retirement would be your average high base pay for 36 months x 75% max retirement percentage.
7200 x 0.75 = 5400 gross retired pay (this appears to be higher than high 3 x the result of years AD x 2.5%).

--You will not be eligible for CRDP until you meet ALL the requirements, including age, for a reserve retirement. To be eligible for early retirement, a member of the Reserve Corps must still complete the 20 year service requirement. How early they can retire depends on the number of active duty days they served on a mobilization after Jan. 28, 2008.

--You will waive retired pay dollar for dollar in the amount of VA compensation received. If your gross retired pay is $5400 and your VA comp is $3000 (example) then, $5400 minus $3000 = $2400 residual retired pay.

--Using the basic concepts above, your monthly pay would be $2400 residual retired pay + $3000 VA = $5400

--You would not have to wait to meet all the requirements for a reserve retirement to receive CRSC; however, your CRSC would be reduced by the amount of residual retired pay which is $2400.

Based on the example figures presented here, the amount you would receive each month is $5400. I should add that a common misconception is that a reservist meeting the 20 good year requirement is authorized CRDP provided other requirements are met. Often overlooked is the age requirement which can be reduced by active duty days served on a mobilization as described above.

Whenever you do receive CRDP, it will be reduced by the amount of residual retired pay, just as described for CRSC.

Added note: CRDP does not require an application; therefore, there is no "approval." It is paid by DFAS to eligible retirees. It is my understanding that the Human Resource Command for the applicable service notifies gray area retirees a few months prior to attaining eligibility for CRDP to file certain documentation. I suppose that could be looked upon as an application. There is an interesting anecdote (discussed early in this thread) involving this process.

References:

DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 64
640204. Non-Regular [reserves] Retired Pay Members eligible for retirement for non-regular service are not eligible to receive CRDP until they reach retirement age and have applied for and have become entitled to receive retired pay.

640401. Since retired pay in excess of the amount calculated for years in service is still subject to offset under the CRDP program, a member with an amount of retired pay remaining after offset of VA disability compensation that is greater than the amount calculated for years of service, is not eligible for any increase in payment of retired pay under the CRDP program.

Ron
 
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uscbailey

Registered Member
Ron,
Thank you for the clarification. I do have enough active duty time since 2008 to begin collecting retirement within the next few months. It looks like I should be ok in retirement.
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Ron,
Thank you for the clarification. I do have enough active duty time since 2008 to begin collecting retirement within the next few months. It looks like I should be ok in retirement.
Excellent!

Ron
 

gsfowler

Staff Member
PEB Forum Veteran
I recommend that any who is non-regular retirement eligible with early age drop build their retirement packet right now, and store it in a place where it is easy to find one year before your year of eligibility.

I've attached the guidance from when I build my packet. Clearly written on it is the day to mail it in.

In my packet I have my 20Y letter, DA5016, DD0108, DD2656, DD214, Retirement Orders and all of my mobilization orders
 

Attachments

nwlivewire

PEB Forum Veteran
Excellent!

Ron


CRDP UPDATE CRDP UPDATE CRDP UPDATE

I was approved for CRDP in early APR 2018 - retro back to retirement date APR 2012 (I'm assuming this - DFAS has not sent me ANYTHING in writing!)

I FOUND OUT I WAS OFFICIALLY APPROVED FOR CRDP in MAY 2018, when I went onto MYPAY and noticed that there had been a notification of change/update of my monthly RAS on MYPAY - this change to be effective JUN 2018. In my case, and maybe this is the way it's done for everyone, I was notified by the little blurb near the bottom of the notification of change of Retiree Account Statement (the RAS) by going online to MYPAY.

In JUN 2018, I received my full VA Compensation - as usual (I've been 100% P&T since APR 2012 - awarded the day after my APR 2012 PDRL retirement date).

In JUN 2018, I received my full retirement pay based on NG/AD time computations (Chap 61 - PDRL APR 2012), just like the new RAS in May 2018 said it would be.

*** I DO KNOW that I was age 56 1/2 at time of PDRL retirement AND had completed 16 credits (four years) of "Early Age Drop" time (and I was in receipt of 20-year NG letter prior to PDRL). This is WHY I believe I am eligible for CRDP Retro Pay BACK to retirement date of APR 2012 - six years worth - 72 months of CRDP.

Last week, I called DFAS for a status update.

DFAS told me that my claim is being audited and that a technician was assigned to audit my account on 15 MAY, 2018. This new bit of information told me that it took almost 30 working days from the time DFAS approved my CRDP claim to the time DFAS assigned my CRDP claim to a technician for an audit.

That was all the DFAS person could see on his screen - only that a technician was assigned my case for auditing on 15 MAY 2018 - no other specific information was he able to provide me, like:

1. How far back am I being awarded retro.

2. Am I even being awarded retro.

Nothing.

The DFAS guy did say it can take 30-60 - even 90 days - before an audit is complete, and told me to call again after 15 JUN to see if there is an audit update.

So as things stand today, all I know for sure is that I was paid CRDP for the month of JUN 2018, my full retirement pay under the CRDP program, and, I rec'd my full 100% VA (as usual).

I will try contacting DFAS again next week to see if I can get any of my other questions answered as to my retro pay - how far back it goes - stuff like that.

Film at eleven...

V/R,
nwlivewire
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
nwlivewire,

The following applies to CRSC (not CRDP specifically), but the same concept likely applies to CRDP:

"All retroactive pay is limited to six years from the date the VA awarded compensation for each disability."

In other words, your retro CRDP might include the entire period you mentioned.

Once completed, you can request a copy of the audit. Send you signed request to:

Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200

Fax: 800-469-6559

Ron
 
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nwlivewire

PEB Forum Veteran
nwlivewire,

The following applies to CRSC (not CRDP specifically), but the same concept likely applies to CRDP:

"All retroactive pay is limited to six years from the date the VA awarded compensation for each disability."

In other words, your retro CRDP might include the entire period you mentioned.

Once completed, you can request a copy of the audit. Send you signed request to:

Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200

Fax: 800-469-6559

Ron

Thank-you for this info!

UPDATE UPDATE UPDATE

I called DFAS on 22 JUN as the last I spoke to them, I was told my CRDP claim file had been assigned to a Technician for "Audit" on May 15, 2018. I was told to call back after 15 JUN - so I did - on 22 JUN.

The DFAS phone guy brought up my file on his computer and said there was no status update - yet.

So it appears the audit is going longer than 30 days - no surprise there, right?

The DFAS phone guy told me to call again AFTER 15 JULY to see if there is any status update on the finalization of my CRDP audit.

*** I was told that IF there is a retro amount owed to me, then those monies (CRDP backpay) WILL be FEDERALLY TAXED at 28% - PRIOR to disbursement to me. The guy said that DFAS DOES NOT withhold FEDERAL TAX IAW your W-4 (like Single and 0 or Married and 5). CRDP RETRO PAY is taxed like other monies such as lump sum cash-outs of leave time, etc. - a flat 28% is automatically withheld PRIOR to your receiving that RETRO CRDP disbursement.

Will call them next month AFTER 15 JULY and post whatever I find out to this thread.


OH... And there is a statute of limitations on CRDP backpay - 6 years max - 72 months. I just barely made it (approved for CRDP on 06 APR 2018 - retired in APR 2012 - 1st CRDP monthly payment 01 JUN 2018), so I believe I will I have 72 months of CRDP retro coming.

V/R,
nwlivewire
 
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RonG

Staff Member
PEB Forum Veteran
Registered Member
Excellent update...

Wages/salary and retired pay are taxable for the year they are paid (not necessarily earned). The higher rate of estimated tax is not surprising; I think we used to (3 decades ago) withhold 20% from reenlistment bonuses and the like.

Of course the amount collected is not/will not necessarily be your effective tax rate when you file your federal return for 2018. It is quite likely you will receive a healthy refund.

It is not uncommon for the DFAS audits to take 2-3 months. I waited that long for a couple a few years ago. The following is obvious, but some will ask why does it take so long:
--DFAS will not be "working" on your audit for 2-3 months.
--It is likely within a batch of work assigned to a particular technician. Once your audit gets to the top of his/her stack (probably an electronic version of a stack), it will be worked.

As a young SSG in the Army I once had a travel section at a large post. Almost all the team members were civilians. In fact, I was put in charge because the section chief just walked off.
Anyway and if i remember correctly, a travel claim would be in our office 7-10 days before completion and disbursement. The voucher probably took 15 minutes to manually compute, but we worked on first in; first out basis. Overtime was not available for he civilian employees during that period.

Thank you for your interesting update.

Ron
 
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