Lastlaugh,
You said: "Ok, I just spent all morning in the MEB office, on the phone with DFAS, the VA, Finance here at Lackland, the legal office at Randolph, and the leadership there at the MEB section. All of them are saying this is not true. (I actually logged in on my phone, and handed them it to read your post.) They all said that I will absolutely get my full retirement (based on my disability rating or TIG, whichever is highest) AND my full VA pay. They all claimed there is no reduction of pay for CDRP AT ALL if you are beyond 20 years. The lawyer explained it best (to me anyways).
He said your comment is accurate, but not the way you think:
[1.] "A disability retiree who also meets the requirements for a regular retirement cannot receive more than the amount of the regular retirement would be (for longevity) "
[2.]This means that, regardless of your DOD rating, you cannot draw more than someone who did a full 30 year career (75% of base pay). SO, if your DOD rating was, say, 100%, you could only draw 75% of your base pay due to the fact that the DOD doesnt pay ANYONE higher than 75% of their base pay. He said this has nothing to do with VA at all, and is irrelevant to this case.
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My (Ron) Comments:
Item number [1] above is correct with regard to CRDP. However, it overlooks the requirement for the disability retiree to waive retired pay (part disability and part longevity) dollar for dollar in the amount of VA compensation received. In some cases, the waiver/VA offset does not cause the complete loss of retired pay. To say VA compensation is irrelevant is unfortunate and wrong. The amount of residual retired pay reduces the amount of retired pay restored via CRDP. Note: Before we leave this area, item [2] above is wrong as well. Please see the applicable law and regulation below. Also included is a real case with feedback from the retiree. Perhaps you could share this with those you have conferred.
CRDP FOR CH 61 RETIREES WITH 20 OR MORE YEARS AD
38 CFR 3.750 - Entitlement to concurrent receipt of military retired pay and disability compensation.
§ 3.750 Entitlement to concurrent receipt of military retired pay and disability compensation.
(a)Definition of military retired pay. For the purposes of this part, military retired pay is payment received by a veteran that is classified as retired pay by the Service Department, including retainer pay, based on the recipient's service as a member of the Armed Forces or as a commissioned officer of the Public Health Service, the Coast and Geodetic Survey, the Environmental Science Services Administration, or the National Oceanic and Atmospheric Administration.
(b)Payment of both military retired pay and disability compensation or improved pension -
(1)Compensation. Subject to paragraphs (b)(2) and (b)(3) of this section, a veteran who is entitled to military retired pay and disability compensation for a service-connected disability rated 50 percent or more, or a combination of service-connected disabilities rated 50 percent or more, under the schedule for rating disabilities ( 38 CFR part 4, subpart B), is entitled to receive both payments subject to the phase-in period described in paragraph (c) of this section.
(2)Chapter 61 disability retirees retiring with 20 or more years of service. Disability retired pay payable under 10 U.S.C. Chapter 61 to a veteran with 20 or more years of creditable service may be paid concurrently with disability compensation to a qualifying veteran subject to the following:
(i) Any waiver required during the phase-in period under paragraph (c)(1)(ii) of this section; and
---->> (ii) If the veteran's disability retired pay exceeds the amount of retired pay the veteran would have received had the veteran retired based on length of service, the veteran must waive that excess amount of disability retired pay in order to receive VA disability compensation.
(3)Chapter 61 disability retirees retiring with less than 20 years of service. Veterans who receive disability retired pay under 10 U.S.C. Chapter 61 with less than 20 years of creditable service are not eligible for concurrent receipt.
Example (real case, September 2018):
I received my Retiree Account Statement from DFAS today, and here are the relevant facts:
1. DFAS Payment: My gross pay is reflected as $5,726 on the DFAS statement, with a VA waiver amount of $1703, for a NET DFAS payment of $4023 (the max you stated DFAS would pay me above).
2. CRDP Payment Amount: My CDRP was calculated at $1,376.47. This is higher than your figure of $1,270 above because I forgot I am also entitled to receive Special Monthly Compensation (SMC) at the K-1 rate of $105.61. If I subtract SMC from the CDRP ($1,376.47-$105.61), I end up with $1,270.86 , which is essentially the CRDP you quoted above. [note: 4023 max payment less 1376.47 CRDP = 2646.53 residual retired pay...Ron]
3. My next assumption, based on the fact that DFAS is paying me $4023, the other $3079.47 comes as a separate payment from the VA? [yes...Ron]
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A new summary--Ron:
a. Gross retired pay = 5726
b. VA compensation = 3079.47
c. A minus B = 2646.53 residual retired pay
d. Dollar amount of longevity portion of retirement = 4023
e. D minus C = 1376.47 CRDP
Added 5 Oct 18:
The retiree will receive each month:
Residual retired pay 2646.53 + CRDP 1376.47 = $4023 longevity portion of retires pay + VA compensation 3079.47 = 7102.47 TOTAL EACH MONTH
------
Final comment: I appreciate the manner in which you presented your concerns: "Please don' take this as disregarding your post. I absolutely am not, and thank you for your post. I am an Intel analyst by trade, and this is the way we get to the facts." Obviously, it was diplomatic.
Ron
U.S. Army Finance Corps (retired in 1991 after 25 years)
You said: "Ok, I just spent all morning in the MEB office, on the phone with DFAS, the VA, Finance here at Lackland, the legal office at Randolph, and the leadership there at the MEB section. All of them are saying this is not true. (I actually logged in on my phone, and handed them it to read your post.) They all said that I will absolutely get my full retirement (based on my disability rating or TIG, whichever is highest) AND my full VA pay. They all claimed there is no reduction of pay for CDRP AT ALL if you are beyond 20 years. The lawyer explained it best (to me anyways).
He said your comment is accurate, but not the way you think:
[1.] "A disability retiree who also meets the requirements for a regular retirement cannot receive more than the amount of the regular retirement would be (for longevity) "
[2.]This means that, regardless of your DOD rating, you cannot draw more than someone who did a full 30 year career (75% of base pay). SO, if your DOD rating was, say, 100%, you could only draw 75% of your base pay due to the fact that the DOD doesnt pay ANYONE higher than 75% of their base pay. He said this has nothing to do with VA at all, and is irrelevant to this case.
----------------------
My (Ron) Comments:
Item number [1] above is correct with regard to CRDP. However, it overlooks the requirement for the disability retiree to waive retired pay (part disability and part longevity) dollar for dollar in the amount of VA compensation received. In some cases, the waiver/VA offset does not cause the complete loss of retired pay. To say VA compensation is irrelevant is unfortunate and wrong. The amount of residual retired pay reduces the amount of retired pay restored via CRDP. Note: Before we leave this area, item [2] above is wrong as well. Please see the applicable law and regulation below. Also included is a real case with feedback from the retiree. Perhaps you could share this with those you have conferred.
CRDP FOR CH 61 RETIREES WITH 20 OR MORE YEARS AD
38 CFR 3.750 - Entitlement to concurrent receipt of military retired pay and disability compensation.
§ 3.750 Entitlement to concurrent receipt of military retired pay and disability compensation.
(a)Definition of military retired pay. For the purposes of this part, military retired pay is payment received by a veteran that is classified as retired pay by the Service Department, including retainer pay, based on the recipient's service as a member of the Armed Forces or as a commissioned officer of the Public Health Service, the Coast and Geodetic Survey, the Environmental Science Services Administration, or the National Oceanic and Atmospheric Administration.
(b)Payment of both military retired pay and disability compensation or improved pension -
(1)Compensation. Subject to paragraphs (b)(2) and (b)(3) of this section, a veteran who is entitled to military retired pay and disability compensation for a service-connected disability rated 50 percent or more, or a combination of service-connected disabilities rated 50 percent or more, under the schedule for rating disabilities ( 38 CFR part 4, subpart B), is entitled to receive both payments subject to the phase-in period described in paragraph (c) of this section.
(2)Chapter 61 disability retirees retiring with 20 or more years of service. Disability retired pay payable under 10 U.S.C. Chapter 61 to a veteran with 20 or more years of creditable service may be paid concurrently with disability compensation to a qualifying veteran subject to the following:
(i) Any waiver required during the phase-in period under paragraph (c)(1)(ii) of this section; and
---->> (ii) If the veteran's disability retired pay exceeds the amount of retired pay the veteran would have received had the veteran retired based on length of service, the veteran must waive that excess amount of disability retired pay in order to receive VA disability compensation.
(3)Chapter 61 disability retirees retiring with less than 20 years of service. Veterans who receive disability retired pay under 10 U.S.C. Chapter 61 with less than 20 years of creditable service are not eligible for concurrent receipt.
Example (real case, September 2018):
I received my Retiree Account Statement from DFAS today, and here are the relevant facts:
1. DFAS Payment: My gross pay is reflected as $5,726 on the DFAS statement, with a VA waiver amount of $1703, for a NET DFAS payment of $4023 (the max you stated DFAS would pay me above).
2. CRDP Payment Amount: My CDRP was calculated at $1,376.47. This is higher than your figure of $1,270 above because I forgot I am also entitled to receive Special Monthly Compensation (SMC) at the K-1 rate of $105.61. If I subtract SMC from the CDRP ($1,376.47-$105.61), I end up with $1,270.86 , which is essentially the CRDP you quoted above. [note: 4023 max payment less 1376.47 CRDP = 2646.53 residual retired pay...Ron]
3. My next assumption, based on the fact that DFAS is paying me $4023, the other $3079.47 comes as a separate payment from the VA? [yes...Ron]
-----
A new summary--Ron:
a. Gross retired pay = 5726
b. VA compensation = 3079.47
c. A minus B = 2646.53 residual retired pay
d. Dollar amount of longevity portion of retirement = 4023
e. D minus C = 1376.47 CRDP
Added 5 Oct 18:
The retiree will receive each month:
Residual retired pay 2646.53 + CRDP 1376.47 = $4023 longevity portion of retires pay + VA compensation 3079.47 = 7102.47 TOTAL EACH MONTH
------
Final comment: I appreciate the manner in which you presented your concerns: "Please don' take this as disregarding your post. I absolutely am not, and thank you for your post. I am an Intel analyst by trade, and this is the way we get to the facts." Obviously, it was diplomatic.
Ron
U.S. Army Finance Corps (retired in 1991 after 25 years)