I recently completed my PEB, awarded 70% DOD, 100%VA P&T, and approved for PLD out to my 20 year mark. My question is should I accept a Medical retirement at 20 years (TDRL) or request the waiver & apply for a regular on the same date? Does it make a difference? Appreciate the community help/thoughts!
Med Retirement or Regular
- Thread starter Kraken21
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- pld retirement tdrl
I second this statement!
I am not familiar with the term, "PLD".
Recommendations/comments:
1. Ensure you reach 20 years active duty (I inferred you were speaking about active duty rather than 20 good years in the reserves/NG).
2. Twenty years active duty qualifies you for immediate Concurrent Receipt (receive both retired pay and VA compensation). Twenty good years in reserve also qualifies one for Concurrent Receipt, but not until the age requirement of approximately 60.
3. There are many retirees who receive a CH 61 retirement but also had 20 years active duty. Personally, I don't see the financial benefit of having the medical retirement when one has 20 years AD. The multiplier for determining the retired pay is usually higher for the medical retirement, but with a CH 61 retirement, the retired pay is reduced by the amount of VA compensation received.
4. Occasionally, there is residual retired pay after the reduction, but the combination of residual retired pay and CRDP cannot exceed the amount determined as the longevity portion of the retired pay. (Multiplier: AD years x 2.5%)
Ron
Great question, except it would be even better if you said DOD 70% because at 20 years you are already 50% DOD by default of a 20 year career. I am interested to hear Ron's answer on this.
Earlier today, I mentioned: "4. Occasionally, there is residual retired pay after the reduction, but the combination of residual retired pay and CRDP cannot exceed the amount determined as the longevity portion of the retired pay. (Multiplier: AD years x 2.5%) "
There are multiple ceilings possible.
a. CRDP cannot exceed the amount of waived retired pay
b. CRDP cannot exceed the longevity portion or retired pay
c. The combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.
d. Each case is different
Some comments.
--Cases where the residual retired pay is more than the longevity portion of retired pay results in zero CRDP. I worked a case like this only a couple of days ago elsewhere.
--Formula for combined residual retired pay and CRDP.
1. Determine amount of longevity portion of retired pay; AD years x 2.5% = longevity multiplier; longevity multiplier x high three = longevity portion of retired pay and maximum for CRDP.
2. Subtract residual retired pay from maximum CRDP = CRDP payable. CRDP payable + residual retired pay are the amounts paid by DFAS.
There are many possible scenarios. See the "multiple ceilings" remark.
DFAS.
You must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.
Under these rules, you may be entitled to CRDP if…
- you are a regular retiree with a VA disability rating of 50 percent or greater.
- you are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50 percent or greater and who has reached retirement age. (In most cases the retirement age for reservists is 60, but certain reserve retirees may be eligible before they turn 60. If you are a member of the Ready Reserve, your retirement age can be reduced below age 60 by three months for each 90 days of active service you have performed during a fiscal year.)
- you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
- you are a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50 percent or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay. [reserves/NG must attain the age requirement]
Ron
eerf123,
Re: "Ron How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right? "
If one has 20 years AD or equivalent (not just 20 good years) and a DoD disability retirement plus a 50% or more VA rating, he/she is entitled to CRDP immediately. See my preceding post.
If one has 20 good years as a reservist/NG and a DoD disability retirement plus 50% or more VA rating, he /she is entitled to CRDP upon reaching the reserve retirement age. See my preceding post.
Ron
Re: "Ron How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right? "
If one has 20 years AD or equivalent (not just 20 good years) and a DoD disability retirement plus a 50% or more VA rating, he/she is entitled to CRDP immediately. See my preceding post.
If one has 20 good years as a reservist/NG and a DoD disability retirement plus 50% or more VA rating, he /she is entitled to CRDP upon reaching the reserve retirement age. See my preceding post.
Ron
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Hello.
Example at 70% DoD disability retirement. Twenty years Active Duty and 50% VA compensation without dependents. High three average base pay is 4000 in this example.
1. 4000 x 0.70 = 2800 retired pay
2. 2800 - 893 (50% VA comp) = 1907 residual retired pay
3. 20 years AD x 0.025 = 50% longevity multiplier
4. 4000 x 0.50 = 2000 longevity portion of retired pay (this is the CRDP maximum)
5. 2000 - 1907 = 93 CRDP payable
6. DFAS pays: 1907 residual retired pay plus 93 CRDP = 2000 total
EXCEPT
The retiree waived only 893 which is another ceiling and that becomes the max CRDP. The residual retired pay far exceeds that amount so...zero CRDP would be paid, but the retiree receives the 1907 residual.
Items 1-6 show hows a 70% DoD rating would be computed. The "exception" is an oddity purposely placed to show that effect as well.
CRDP is restored retired pay. The 893 was the amount of retired pay waived/reduced/offset.
Ron
cc: @Guardguy11
Hello Ron, I have some questions about this exact scenario. I have currently 21 years of active duty service and was referred to PEB. I have received my finding with a 90% DOD Rating and 100% VA rating (pretty sure P&T, as the proposed benefits letter states a "proposed eligibility of Ch. 35 Dependent education benefits").
-My DOD findings were:
1. 70% for (unstable) for other reactions to severe stress/ major depressive disorder moderate
2. 40% for (stable) other intervertebral disc disorders, lumbar
3. 30% for (stable) cervicalgia
To my understanding I am recommended TDRL vice PDRL due to 38 C.F.R. 4.129 states with mental health disorders placement on TDRL.
I have reviewed with my Counsel, PEBLO, MSC (states cannot discuss anything with me until letter is release from Navy HR) and NAVY WOUNDED WARRIOR reps. After counsel I have concurred with the PEB findings.
Here are my questions.
1. Wounded Warrior Reps are telling me if I am retired under TDRL, I will not be eligible for CRDP, I believe this to be incorrect as DFAS states what you have previously stated above, also my interpretation of 10 USC Ch 61 and 10 USC CH 71. I would be eligible as I am over 20 years of service and over 50% disability. I just cannot receive any excess compensation than I would receive with a length of service retirement. Is my interpretation correct, or does the Wounded Warrior rep know some rule that I am missing?
2. Under TDRL, I will be required to be reevaluated for my (unstable) Mental Health issue to ensure I am rated appropriately. Under the Navy I am eligible to waive the findings of the PEB and retire under length of service instead of way of disability. I am leaning more towards this direction for my own personal reasons. I can't get an answer if my VA disability proposed ratings will still be honored?
- I am confused due to this statement quoted from my proposal letter
"The determination if entitlement to DVA benefits is contingent upon the Member's discharge from active duty and upon the Member having the requisite character of discharge, as specified in the regulations. In the event the Member is not separated from service as a result of the IDES process, or upon discharge, lacks the requisite character of discharge, this rating is null and void for purposes of entitlement to DVA benefit."
3. I am unsure if the waiving the PEB findings and taking a length of service retirement will still count as me being separated as a result of the IDES process or will I have to redo the disability evaluation process (DBQ's Doctor evaluations, submit VA forms)?
I believe it counts as a result of IDES process and VA ratings will still be valid but can't seem to get a solid answer, i have conferred with PEBLO, JAG, DFAS, VSO, Navy Personnel with none able to give me a solid answer.
I apologize for the long question.
Thanks in advance for any assistance.
Hello,
Ron
Edited to add:
Example: A regular component service member is retired under Chapter 61 for disability in 2020 after completing more than 20 years of creditable service under 10 U.S.C. § 1405. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling. This member may only receive concurrent military disability retired pay in an amount equal to what the member would have hypothetically received had the member retired for longevity/years of service. Any remaining amount of military disability retired pay is still subject to the waiver requirements of Title 38 United States Code (U.S.C.), sections 5304 and 5305.
Note: For Reserve/Guard members who receive their Notification of Eligibility for Retired Pay at Age 60 (“NOE”) and are later retired under Chapter 61 for disability with immediate retired pay, concurrent retired pay may not be paid until the member reaches the eligibility age that (s)he otherwise would have been required to reach in order to start receiving military retired pay. This is because there is no provision of law under which such a member would be entitled to receive retired pay before eligibility age if the member had not been retired under Chapter 61 for disability.
Reserve/Guard members who are retired under Chapter 61 for disability should contact their Branch of Service to determine their eligibility age and creditable service/points, and to ensure that the Branch of Service is in contact with DFAS so that concurrent retired pay may be started. DFAS must receive the information directly from the Branch of Service. Any recalculation of creditable service/points must be addressed with the Branch of Service.
Eligibility (of Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):
To be eligible to receive both military disability retired pay and VA Disability Compensation concurrently, a member who was retired under Chapter 61 for disability must:- Have completed 20 years or more of service creditable under 10 U.S.C. § 1405, or 20 years of service computed under 10 U.S.C. § 12732, at the time of the retirement; and
- Be entitled for any month to both military disability retired pay and VA Disability Compensation; and
- Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities.
Ron
Edited to add:
Entitlement Amount (for Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):
A military disability retiree with more than 20 years of creditable service for retirement must still waive retired pay in order to receive VA Disability Compensation. The waiver amount is the amount that the military disability retired pay exceeds the amount of military retired pay to which the member would have been entitled to receive if the member had hypothetically been retired under another law (such as the law that permits voluntarily retirement based on longevity/years of service). As a result, the amount of military disability retired pay that a disability retiree may receive concurrently with VA Disability Compensation may be limited. (Disability retirees who retired before December 31, 2013 were also subject to the phase-in described above).Example: A regular component service member is retired under Chapter 61 for disability in 2020 after completing more than 20 years of creditable service under 10 U.S.C. § 1405. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling. This member may only receive concurrent military disability retired pay in an amount equal to what the member would have hypothetically received had the member retired for longevity/years of service. Any remaining amount of military disability retired pay is still subject to the waiver requirements of Title 38 United States Code (U.S.C.), sections 5304 and 5305.
Note: For Reserve/Guard members who receive their Notification of Eligibility for Retired Pay at Age 60 (“NOE”) and are later retired under Chapter 61 for disability with immediate retired pay, concurrent retired pay may not be paid until the member reaches the eligibility age that (s)he otherwise would have been required to reach in order to start receiving military retired pay. This is because there is no provision of law under which such a member would be entitled to receive retired pay before eligibility age if the member had not been retired under Chapter 61 for disability.
Reserve/Guard members who are retired under Chapter 61 for disability should contact their Branch of Service to determine their eligibility age and creditable service/points, and to ensure that the Branch of Service is in contact with DFAS so that concurrent retired pay may be started. DFAS must receive the information directly from the Branch of Service. Any recalculation of creditable service/points must be addressed with the Branch of Service.