Don't know if this will help anyone here, but this is what DFAS is giving me for my medical retirement....
I have 12 yrs 3 months AD time (was NG).
I have a 20 year retirement letter from NG.
I was a regular NG who was mobilized, then transferred to WTU/CB-WTU for medical treatment, care, etc.
Went through the IDES process - rec'd 70% PDRL.
Went through the VA process with IDES - rec'd a "proposed" rating of 100%
I was always an Enlisted, never served as an Officer, and was never busted down in rank.
DFAS calculated my retirement based on:
1. Final pay calculation as I had AD time BEFORE 08 SEP 1980
(for those who have AD time AFTER this date, calculation will be the 36 month average of your AD base pay)
2. NO combat/combat related designation on IDES process DA Form 199, NO Block 10 a/c "checked" or 10 a/c approved on DA Form 199 - so my 70% PDRL retirement is Fed taxed.
3. VA compensation is "proposed" (NOT final yet) at 100% - at unemployable - with Chapter 35 VA Education benefits for spouse/children (for which I have NEITHER, so for me, the Chapter 35 will not be usuable as I have no qualifying family members).
4. NOT CRSC eligible.
5. CRDP eligible at age 60 (the month following my 60th birthday) and not a moment before then. I DO NOT have qualifying mobillization time after 28 JAN 2008, so DFAS told me I have to wait until I am aged 60 to get CRDP. BECAUSE I DO HAVE A 20 YEAR NG RETIREMENT LETTER, I will qualify for CRDP at age 60. As a NG with a 20-year NG retirement letter, the MAXIMUM I can recieve for CRDP will be what my GROSS monthly NG retirement amount is (or will be at age 60), PLUS my VA compensation.
So my current PDRL retirement is at 70% of monthly base pay at time of IDES process retirement (DD-214). That means that my PDRL retirement is 70% of my AD monthly base pay for my rank at time of IDES retirement (you will get a DD-214 and your retirement date begins the day after discharge). Due to my years of service for PAY purposes, I was already maxed out for monthly pay at my rank. THAT is the figure that DFAS used for my base pay calculation - base pay of my rank and years of service - the monthly gross amount figure of my 70% PDRL retirement was the base pay with years of service that I was receiving on my final AD LES. So my calculation of 70% PDRL from DFAS was based on my final LES at time of retirement.
6. I was told at time of discharge out-processing, that I will also receive VA compensation. My military PDRL money will be off-set when I begin to receive VA compensation. VA compensation is NON-taxable - my 70% PDRL is Fed and state taxable. At some point, when the VA gets to THEIR final approval for their percentage of compensation, DFAS and VA finance will communicate with each other and come up with who pays what amount of money to me every month as there are off-sets until I turn age 60. VA has not completed their final approval yet, so right now, DFAS is currently paying me 100% of my PDRL retirement monies (70% PDRL based on rank and years of service). VA is NOT final yet, even through I rec'd a VA "proposed" rating while going through the IDES process. So DFAS is paying me my entire amount of 70% PDRL - and this entire amount is Fed and state taxable for me - ouch!
7. WHEN the VA finally gets to their final approval stage, my retirement will be a combination of the following, but that combined total CANNOT exceed the original 70% PDRL gross retirement money. (This is what DFAS told me, so I am assuming all this information is correct). For me, according to what DFAS told me over the phone, even though I have 70% PDRL (four injuries - all physical - with injury One at 40%, injury TWO at 30%, injury THREE at 20%, injury FOUR at 0%), I cannot get CRDP until age 60. I have no qualifying time to get it any sooner than age 60, BUT I DO HAVE my 20 year NG retirement letter.
As of today, this is what I am to get - before age 60 - WITHOUT 20 years AD time, but WITH a 20 year NG retirement letter.
This is what DFAS told me, so this is all I know at the moment.
My first WHOLE 70% PDRL monthly check from DFAS is due to electronic deposit 01 JUN (tomorrow) - minus Federal and State taxes.
I retired mid-April, 2012, and have already rec'd that partial month retirement pay from DFAS. I rec'd that partial April retirement check two weeks ago - in May. DFAS was 100% correct on their calculation - and to the penny!
DFAS took out the Federal and State taxes (YOU have to make sure if you live in a State that taxes this type of retirement income, that YOU fill out the DFAS state tax form for your state, so DFAS can take out your state tax. Otherwise, you could end up with a nasty surprise with your state tax situation next year).
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VA HAS NOT finalized their compensation yet, so for the time being, I will receive:
DFAS 70% PDRL based on final monthly base pay at rank and years of service at time of retirement - minus Federal and State taxes.
When the VA comes on line, then I will receive the following combined income - NOT to exceed the original 70% gross monthly retirement pay:
VA compensation (non-taxable to Fed and State) PLUS whatever amount added to the VA compensation that EQUALS TOGETHER, the ORIGINAL 70% PDRL from DFAS.
In my situation, my PDRL will be GREATER than my VA compensation, so I will receive all my VA compensation (non-taxable), PLUS a small amount of my gross PDRL retirement (which I will then receive AFTER DFAS withholds Federal/State tax).
Those two figures (VA compensation PLUS small gross amount from PDRL/DFAS) is suppossed to add up to be NO GREATER THAN the original full 70% PDRL.
So VA compensation (tax-free) PLUS
Small amount from PDRL (taxable) EQUALS
ORIGINAL gross amount of 70% PDRL.
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AT AGE 60, AND WITH A 20 YEAR NG RETIREMENT LETTER:
(This is how it got explained to me, so if this is wrong in ANY way - PLEASE correct me)
1. VA compensation PLUS an increase in PDRL money. BUT, that PDRL money is NOT to exceed what I would have rec'd for my NG retirement at age 60.
2. VA is non-taxable, but the money from PDRL is taxable. But I have been told that I cannot have BOTH FULL-ON VA AND the FULL-ON original 70% PDRL computation as I did not do 20 years Active Duty service. DFAS will use my NG retirement pay as their limit of payment to me - and that limit will be taxed, too). But the VA compensation will be whatever I will be getting from them and I will lose the pre-age 60 off-sets.
So, from what I was told, if you have a 20-year NG retirement letter, then your retirement disability income will increase at age 60, but be limited to what you would have rec'd as your 20-year retirement pay from the NG. (Assuming no CRSC, no 10 A/C on DA Form 199, and no ealier than age 60 retirement time). The pre-age 60 off-set between the VA/DFAS goes away, and DFAS will increase their pre-tax amount to be equal to what you would have rec'd from your NG retirement at age 60.
In my situation, should I live to age 60, my disability retirement will increase another 750.00 per month taxable retirement income, this additional increase being based on what I would have rec'd had I retired out at age 60 with my NG retirement.
This is what I was told and could understand. But if I am wrong, PLEASE correct me.
If this is incomplete information, and there is more - PLEASE add to this.
v/r,
nwlivewire
