Quick question: medically retired with 20 AD. VA rating 100%, which is more than my retired pay. Looking at my retirement order, I see DFAS was copied. Since DFAS will administer my pay, what would I need for my base Finance office when I out-process, since I’m not going to draw true retired pay, per se, as DFAS seems to take over my retired pay matter?
Medically retired -DFAS and Base Finance
- Thread starter Orange Sky
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Technically, DFAS will be involved from the beginnng. Not all CH 61 retirees waive all their retired pay; some have retired pay higher than the VA compensation. There will be an accounting of your retired pay (all waived) each month and I suspect a DFAS RAS will be generated.
IF you qualify for a regular retirement now (not reserve or NG) and have >=20 years active duty and >=50% VA rating you qualify for CRDP now and will have waived retired pay restored not to exceed the dollar amount of the regular retirement amount. In other words, you receive Concurrent Receipt—Retired Pay/CRDP and VA comp. CRDP would be shown as a remark on page two of the DFAS RAS and would be all or part of the gross retired pay on page one.
I retired in 1991 (when DFAS assumed responsibility for most payments to military) so it has been a long time since I processed a retirement. However, I believe the following will apply:
—Local command/personnel office sends your retirement documents to the Human Resources Command
—Human Resources Command sends documents to DFAS to establish retired pay
—Your DD 214 and retirement orders would be necessary for local finance out-processing.
You might call the local office and inquire.
Ron
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Yes sir. Thank you. I will for sure be electing Ch 61 (it locks in my Tricare Premiums). My VA at 100% is way more than what my 20 AD enlisted pay would have been but there’s an offset for CRDP (20 AD years) and that’s the part that’s semi-fuzzy, as you’ve explained it to me before with calculations. VA pay is non-taxable as well. But yes, I plan on taking Ch 61 medical for these aforementioned benefits.
I spoke of CRDP, which is restored retired pay and it is taxable.
CRSC is a replacement for waived retired pay for combat related disabilities. It is non-taxable.
IF you retired under a regular 20 year military retirement, you would have been covered by Tricare as well. I was 44 when I retired and was covered by Tricare from day one. I inferred you were eligible for a regular 20 year retirement but choose to receive a CH 61 retirement. Much of what I have written here is based on that inference.
CRDP and CRSC Comparison: https://www.dfas.mil/retiredmilitary/disability/comparison.html
Ron
Copy all, Ron. Thank you.
About when should one expect to get the DFAS letter asking the retiree to make an election on which plan the member chooses, Ch 61 or YOS retiree pay?
About when should one expect to get the DFAS letter asking the retiree to make an election on which plan the member chooses, Ch 61 or YOS retiree pay?
That is an excellent question for which I do not know the answer.
I know that for retirees who qualify for both CRDP and CRSC, the DFAS automatically pays the larger amount and gives the retiree the option to change it (and there are situations where a retiree would accept a lower amount of CRSC since it is non-taxable). I have done that in the past due to other sources of taxable income.
The PEBLO (Physical Evaluation Board Liaison Officer) should be able to answer your question.
Ron
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Your local finance office is functionally connected to DFAS. Everyone out processes through finance.
1. 20 good years reserve and medical retirement: If otherwise eligible, receives CRDP (restored retired pay) upon reaching the age requirement for RC retirement (normally age 60).
2. 20 years active duty for regular retirement and receives medical retirement: If otherwise eligible, receives CRDP immediately (not to exceed amount of what regular retirement would be). It appears this applies to you as you previously said, “So I'm quickly approaching 20 yrs of active duty service in October. I'm pretty sure I've read this before and even tried to look through 10 USC for definite answers. But I'm nervous because a friend told me something very different.”
3. Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive both military retired pay and Veterans Affairs (VA) compensation. This was prohibited until the CRDP program began on January 1, 2004.
https://www.dfas.mil/retiredmilitary/disability/crdp.html
4. CRDP restores only the longevity portion of retired pay (not disability portion).
Ron
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