MED BOARD OVER 20 YEARS ACTIVE HAVING TO PAY MONEY EACH MONTH DUE TO RETIREMENT ISVMORE THAN VA

[Hplott]

So I medical boarded with 22 years active. I was rated 75% from medical board 100% from VA. First retirement they took over $1000.00 under VA waiver. Dfas this is due to I draw more retirement than VA and went out under Chapter 61? So $200 more dollars cost me over $1000.00. All they would say is Chapter 61 tab A its the law.

Anyone got anything on this?

Thanks

 

[RonG]

So I medical boarded with 22 years active. I was rated 75% from medical board 100% from VA. First retirement they took over $1000.00 under VA waiver. Dfas this is due to I draw more retirement than VA and went out under Chapter 61? So $200 more dollars cost me over $1000.00. All they would say is Chapter 61 tab A its the law.

Anyone got anything on this?

Thanks

Hello @Hplott

1. This is a common occurrence. BTW, there is no 75% DoD rating, but 80% thru 100% are paid at 75%.
2. Your disability retired pay is 75% x your average high three base pay.
3. Your retired pay is reduced dollar for dollar in the amount of your VA compensation. If your retired pay was more than the VA amount, you would have residual retired pay you keep.
4. CRDP would restore the longevity portion of retired pay. Per your info, that would be: 55% x average high three base pay = CRDP.
5. However…CRDP combined with residual retired pay cannot exceed the dollar amount of the longevity portion of retired pay.
6. Bottom line: You receive all your VA compensation.
You also should receive an amount from DFAS that is equal to the longevity portion of retired pay.
7. My comments are based on the info you provided. They are also based on current law.
SEE: https://comptroller.defense.gov/Portals/45/documents/fmr/current/07b/07b_64.pdf <—-LINK

Ron