Medical Retirement Pay for National Guard Soldier

matthewsnyder82

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So here is my current situation.

I have just received my IPEB results. 70% DoD PRDL and 90% Va.
I am ok with these results and want to submit the final paperwork to start my separation.
I was just told by the PEBLO that I will not be eligible for medical retirement pay at all until I am age 60.
I have 13.5 year of active federal service and 20.5 "Guard Years".
My injuries were combat related, and she said I may be eligible for CRSC which I agree with.

I am very confused as everything I see online and read says as long as you are over 30% DoD.
My high 3 will be around 7500 give or take for estimates. So I do not understand the math.

Can anyone in the same situation walk me through it?
 

RonG

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You are eligible for disability retirement @70% of your high three.

High three average base pay is the total of the highest 36 months base pay divided by 36.

Your retired pay will be reduced by the amount of VA compensation you receive.

If approved, CRSC could replace some of the reduced/waived retired pay.

Once you meet the age requirement for reserve retirement you will be eligible for CRDP if your VA rating is 50% or more. CRDP restores the longevity portion of your retirement pay.

CRSC and CRDP cannot be paid at same time.

Ron
 

matthewsnyder82

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Thanks a lot RonG! I will bring it up to her tomorrow. I was just shocked when she said that as I had been financially dependent on the assumption I will collect retirement pension now.
 

RonG

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The info I just gave you is common knowledge; I am surprised she/they did not know.

Of course my reply was based on the info you provided.

Good luck,
Ron
 

RonG

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You might have misunderstood her.

As I said, your retired pay will be reduced by the amount of VA compensation received. She might have determined that ALL your retired pay would be offset by VA compensation.

Question: Did you get the high three average base pay amount from her? I ask because it is much higher than what is customarily seen here.

Ron
 

matthewsnyder82

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RonG.

I got the High 3 off of Dfas using the last 3 years of pay charts. I am currently an O4.

You reinforcing what I thought to be right is very reassuring. I hope she is just confused or maybe misreading something. Tomorrow I will be going over my paperwork with the JAG at Fort Gordon.
 

RonG

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I was going to speculate you were a major. I was a major also, but I had the word “sergeant” in front of it.

I know...that is a poor excuse for a joke but I continue to use it often.

Ron
 

matthewsnyder82

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lol. yeah.. I hear ya. It was my 1SG that ordered me to OCS in the first place. I always took his advice in my beginning years when he was around. Very grateful for his guidance. Its helped me a lot.

And thanks for yours as well.
 

RonG

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Example of waiver of retired pay (the reduction).

DoD Disability Retirement Pay = 3000
VA compensation = 3100
3000 - 3100 = zero retired pay

Ron
 

RonG

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Re:So here is my current situation.

I have just received my IPEB results. 70% DoD PRDL and 90% Va.
I am ok with these results and want to submit the final paperwork to start my separation.
I was just told by the PEBLO that I will not be eligible for medical retirement pay at all until I am age 60.
I have 13.5 year of active federal service and 20.5 "Guard Years".
My injuries were combat related, and she said I may be eligible for CRSC which I agree with.

I am very confused as everything I see online and read says as long as you are over 30% DoD.
My high 3 will be around 7500 give or take for estimates. So I do not understand the math.

Comments.

1. 7500 x 0.70 = 5250 ret pay
2. VA comp @ 90% single = ~1833
3. 5250 minus 1833 = 3417 residual retired pay (you keep)
4. Your CRSC will be reduced by the amount of residual retired pay. The combination of CRSC + residual retired pay cannot exceed the longevity portion of retired pay which is:
(AD years x 2.5%) x (high three) = longevity portion of retired pay

Ron
 

gsfowler

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It may be in you best interest not to apply for CRSC as you will have to waive your retirement. Once you hit the age of 60 (or sooner if you have qualifying service per the NDAA of 2008) you can collect your non-regular (reserve) retirement and VA C&P award concurrently.
 

RonG

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It may be in you best interest not to apply for CRSC as you will have to waive your retirement. Once you hit the age of 60 (or sooner if you have qualifying service per the NDAA of 2008) you can collect your non-regular (reserve) retirement and VA C&P award concurrently.
Waiving the retired pay is required as stated, but as a disability retiree he is going to have his retired pay reduced by the amount of VA compensation whether he has CRSC or not.

Assuming he has not met the age requirement for non-regular retirement at this time...
a. Without CRSC, there will be no replacement of waived retired pay
b. With approved CRSC, some or all of the waived longevity portion of retired pay will be replaced

Once he meets the age requirement of 60 (or less in certain cases)...
a. He can apply for his reserve retirement and still choose the higher multiplier for the disability percentage given by DoD. This action will also trigger CRDP by DFAS upon receipt of the HRC documents. Since he previously was not eligible for CRDP, the DFAS will automatically implement the higher rate of CRSC or CRDP. He will be given the opportunity to change that automatic selection.
b. Thereafter, he will be able to choose between CRSC and CRDP each open season (January).
c. One of the ceilings for CRSC and CRDP is the dollar amount of the longevity portion of retired pay.

Choosing between CRSC and CRDP:
—CRDP restores all of the waived longevity portion of retired pay.
—CRSC replaces only the waived retired pay identified as combat related, not to exceed the longevity portion of retired pay.
—Opinion: If the approved CRSC percentage is the same as the VA percentage plus SMCs, then CRSC is likely the best choice.
If the approved CRSC percentage is less than the VA percentage, then CRDP is likely the best choice.
—Consideration: Some will choose CRSC even if the percentage does not cover all the waived longevity portion of retired pay
because they have other taxable income. They will have performed a comparison and determined than with the tax break, accepting less results in more net income overall. I did this for a few years.

Ron
 

Guardguy11

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So here is my current situation.

I have just received my IPEB results. 70% DoD PRDL and 90% Va.
I am ok with these results and want to submit the final paperwork to start my separation.
I was just told by the PEBLO that I will not be eligible for medical retirement pay at all until I am age 60.
I have 13.5 year of active federal service and 20.5 "Guard Years".
My injuries were combat related, and she said I may be eligible for CRSC which I agree with.

I am very confused as everything I see online and read says as long as you are over 30% DoD.
My high 3 will be around 7500 give or take for estimates. So I do not understand the math.

Can anyone in the same situation walk me through it?
Your PEBLO is mistaken. If you are going through the IDES process, are found unfit for service related issues, and your referred condition(s) are rated at 30% or higher, you are eligible for a chapter 61 retirement. This means that you will start receiving a pension upon separation just like an active duty counter part.

I am really puzzled how your PEBLO wouldn't know this... I can provide you a line by line afi reference showing how you are eligible, but my guess is finance will know what is going on.

At 70% DOD, you are eligible for a pension, tricare, and all active duty retirement privileges.

If at any point, it looks like they are trying to do something to the contrary, you immediately need to lawyer up.

As for the calculations, it looks like Ron took care of that.

Please fire back any questions. Happy to help.
 

Diamondpoir

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I have a burning question here. I have 25 years total service (10 Air Guard, 15 active ). I was injured while on deployment title 10 orders. I completed IDES and rated %40 DOD and %100. I received my orders and will retire on 27 Nov. I know that I will have my retired pay reduced by the VA. I’ve already had my retired age reduced to 58. Question is that when I hit 58 will my retirement switch over to a Guard retirement (5600 points) or will it stay active duty %40 forever. I’m also a ANG civilian technician so I won’t be able to collect a Title 10 retirement along with civil service retirement. I really hope it will convert to a reserve retirement later on so I will be able to have both of those retirements. Any thoughts would be much appreciated. Thank you all that you do!
 

Diamondpoir

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Registered Member
I have a burning question here. I have 25 years total service (10 Air Guard, 15 active ). I was injured while on deployment title 10 orders. I completed IDES and rated %40 DOD and %100. I received my orders and will retire on 27 Nov. I know that I will have my retired pay reduced by the VA. I’ve already had my retired age reduced to 58. Question is that when I hit 58 will my retirement switch over to a Guard retirement (5600 points) or will it stay active duty %40 forever. I’m also a ANG civilian technician so I won’t be able to collect a Title 10 retirement along with civil service retirement. I really hope it will convert to a reserve retirement later on so I will be able to have both of those retirements. Any thoughts would be much appreciated. Thank you all that you do!
I apologize as is should’ve started a new topic instead of piggybacking........
 

RonG

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I have a burning question here. I have 25 years total service (10 Air Guard, 15 active ). I was injured while on deployment title 10 orders. I completed IDES and rated %40 DOD and %100. I received my orders and will retire on 27 Nov. I know that I will have my retired pay reduced by the VA. I’ve already had my retired age reduced to 58. Question is that when I hit 58 will my retirement switch over to a Guard retirement (5600 points) or will it stay active duty %40 forever. I’m also a ANG civilian technician so I won’t be able to collect a Title 10 retirement along with civil service retirement. I really hope it will convert to a reserve retirement later on so I will be able to have both of those retirements. Any thoughts would be much appreciated. Thank you all that you do!
1. At 58 you can apply for reserve retirement if you have 20 good years.. Since 40% is higher than the year equivalent pay of 5600 points which is around
~38.9 %, you will continue to receive 40%. In any case, DFAS will pay the higher of the two.

2. You must apply for the reserve retirement, it is not automatic. Same for regular retirements.

3. If you are rated at 50% or more by the VA and have 20 good years (and meet the age requirement for reserve retirement) you will be eligible for CRDP which will restore the longevity portion of retired retired pay.

4. I know little about dual retirements except it affects certain payments of retired pay if I remember correctly. I’ll research that later.

Ron
 

Diamondpoir

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Registered Member
1. At 58 you can apply for reserve retirement if you have 20 good years.. Since 40% is higher than the year equivalent pay/years of 5600 points which is around
~38.9 %, you will continue to receive 40%. In any case, DFAS will pay the higher of the two.

2. You must apply for the reserve retirement, it is not automatic. Same for regular retirements.

3. If you are rated at 50% or more by the VA and have 20 good years (and meet the age requirement for reserve retirement) you will be eligible for CRDP which will restore the longevity portion of retired retired pay.

4. I know little about dual retirements except it affects certain payments of retired pay if I remember correctly. I’ll research that later.

Ron
Ron thank you for getting back with a response. You are super knowledgeable and a tremendous asset to this forum! I’ve just started with my states HR for civil service retirement. I will update you on that side of the house and hopefully I can “pass it forward” to others in the same situation.
 

RonG

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Thank you. Your updates in the future will be helpful to many.

Regards,
Ron
 

RonG

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Civil Service.

CRDP

DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 64 * October 2018

640205. Retired Pay Waived A member who waives retired pay in order to credit military service for the purpose of establishing eligibility for a civil service retirement, or for any reason other than to receive VA disability compensation, is not eligible to receive CRDP payments. A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRDP. Members who are in receipt of a civil service retirement and believe they may be eligible for CRDP should consult the Civil Service Retirement System and Federal Employees Retirement System Handbook for Personnel and Payroll Offices for further information on eligibility. See also CSRS/FERS Handbook.

CRSC

DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017

630402. Retired Status

A member must be in a retired status (i.e., on the retired rolls), or have been transferred to the Fleet Reserve or Fleet Marine Corps Reserve. A member who is recalled to, or retained on, active duty is not in a retired status and therefore is not entitled to CRSC for such period of active duty. 630403. Entitled to Retired Pay

A. A member must be entitled to retired pay, notwithstanding that such retired pay may be reduced due to receipt of VA disability compensation. A reservist who has not reached the requisite age to receive retired pay (generally age 60) is not eligible to receive CRSC payments. See Chapter 1, subparagraph 010208.F, for when the eligibility age of a reservist will be reduced below 60 years of age and become eligible for retired pay.

B. A member who waives retired pay in order to credit military service for the purposes of establishing eligibility for a civil service retirement, or for any reason other than to receive disability compensation from the VA, is not eligible to receive CRSC payments.
A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC, if the member is still eligible to receive military retired pay. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility.

Ron
 
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