pay confusion

Matt001

Registered Member
I'm a little confused on retirement pay after med board. I was rated at 70% DOD, 100% VA and I am an E7 and have 20 1/2 years in. I also took the redux at 15 years and I'm getting different answers to what my pay will be or % of retirement pay. Would I get the 70% per DOD, 50% normal retirement or stay at the 40% due to the redux? I was told and from I understand from websites that I would fall under a normal 50% as I'm being medical discharge and then just get the VA 100% on top of that. Can anyone break this down for me? Just trying to get an understanding of what to expect.
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
  1. You will receive all your VA compensation.
  2. High three x 70% = your disability retired pay
  3. Your disability retired pay will reduced by the amount of VA comp you receive. Occasionally, there is residual (left over) retired pay.
  4. The restoration of retired pay (CRDP) will be based on your active duty service AND the REDUX formula for computing retired pay, it will be less than 50% based on your comments.
  5. The combination of any residual retired pay Plus the REDUX computation of CRDP cannot exceed the longevity portion of retired pay using REDUX.
I've encountered 8-10 similar cases in the past. REDUX is not often seen in CH 61 retirements...my opinion of course.

Ron
 

Kbert84

PEB Forum Veteran
Registered Member
According to the DFAS website:

Disability Retirees and Reserve/Guard members retiring at age 60 (or younger in some cases) are exempt from all provisions of the CSB/REDUX provisions except the 1 percent COLA reduction.
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
According to the DFAS website:

Disability Retirees and Reserve/Guard members retiring at age 60 (or younger in some cases) are exempt from all provisions of the CSB/REDUX provisions except the 1 percent COLA reduction.
The one-percent COLA reduction is the cause for the restoration of his pay via CRDP by use of the REDUX formula and in his case, to be less than 50%. Additionally, the laws pertaining to CRDP are factors in the info provided earlier.

Ron
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Subject: Chapter 61 Retirements and REDUX.

I returned to another board where another veteran and I (as Ron91) used to field most of the CRSC/CRDP questions after Mike Parker (maparker) & Dally7777 moved on. There were several discussions on the the subject above and our replies were an expanded version of what is shown in my initial post in this thread (post # 2). A question concerning disability retirements and REDUX was submitted to DFAS. An excerpt follows:

[quotation begins]

A recent response from DFAS:

Question:
A recurring question that I see on various veteran websites concerns how CRDP is calculated when a veteran with more than 20 years service has been retired under Chapter 61 but previously opted for the REDUX system.

When the VA disablity compensation exceeds the chapter 61 retirement amount, is the amount restored by CRDP calculated at the reduced REDUX retirement factor or at the 2.5% per year of service rate used for Chapter 61 purposes?

For example, a retiree has 20 years service and DOD disability finding of 30% disability. The retiree is retired at 50% based on 2.5% per year of service IAW chapter 61. All of his retirement is offset by his VA compensation. His REDUX retirement would be 40%. Is CRDP dollar amount based on the 40% or the 50% factor?

Answer:
The CRDP dollar amount is based on the 40% REDUX retirement
. If you would like an audit of your account or have any further questions they may be directed in writing to:

Defense Finance and
Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200
address updated

[quotation ends]
----
Ron
 
Last edited:

Kbert84

PEB Forum Veteran
Registered Member
I feel like I am never going to understand the DFAS world! :p
I also accepted the REDUX; but I am not eligible for CRDP... do you know how that will affect my pay??
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
I feel like I am never going to understand the DFAS world!
I also accepted the REDUX; but I am not eligible for CRDP... do you know how that will affect my pay??
More information is needed.

  1. What type retirement are you receiving (examples: regular--aka 20 yr AD; reserve; TERA; disability)?
  2. If disability retirement...what is the DoD rate/percentage? Also, if you have a disability retirement do you qualify for another type retirement now in addition to the disability retirement?
  3. What is your VA compensation percentage?
  4. Number of years active duty?
Ron
 

Kbert84

PEB Forum Veteran
Registered Member
More information is needed.

  1. What type retirement are you receiving (examples: regular--aka 20 yr AD; reserve; TERA; disability)?
  2. If disability retirement...what is the DoD rate/percentage? Also, if you have a disability retirement do you qualify for another type retirement now in addition to the disability retirement?
  3. What is your VA compensation percentage?
  4. Number of years active duty?
Ron
I haven't received ratings yet so I will make assumptions. The ratings are my best guess based of my DBQs and the VASRD.

Disability retirement only - no other retirement eligibility
Estimating 40% DoD/90% VA
16 yrs 6 months Active Duty
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
I haven't received ratings yet so I will make assumptions. The ratings are my best guess based of my DBQs and the VASRD.

Disability retirement only - no other retirement eligibility
Estimating 40% DoD/90% VA
16 yrs 6 months Active Duty
**Added: "I feel like I am never going to understand the DFAS world!
I also accepted the REDUX; but I am not eligible for CRDP... do you know how that will affect my pay??"**
Thank you for the information.

You have less than 20 years active duty; the REDUX multiplier does not apply to the REDUX retirement plan at under 20 years of service since REDUX is only an active duty retirement plan. You are correct in that you are not eligible for CRDP based on the info you provided.

If your disability is found to be permanent and is rated at 30 percent or greater, or you have 20 or more years of service, you will be placed on the Permanent Disability Retired List (PDRL).

Your retired pay will be computed using one of two methods.

  • Your disability percentage, referred to as Method A.
  • Your years of active service, referred to as Method B.
Your pay will be computed based on whichever method is more beneficial for you.

Method A for you based on info you provided: Average of highest 36 months of base pay x 40% = gross disability pay

Method B for you based on info you provided: Average of highest 36 months of base pay x 41.25% = gross retired pay*
*16.5 years x 2.5% = 41.25 %

Your gross retired pay will be reduced by the amount of VA compensation received. If you had CRSC approved, some of the "reduced" retired pay could be replaced.
https://www.dfas.mil/retiredmilitary/disability/crsc.html <----CRSC LINK

Ron
 

katy2160

PEB Forum Veteran
Registered Member
I'm a little confused on retirement pay after med board. I was rated at 70% DOD, 100% VA and I am an E7 and have 20 1/2 years in. I also took the redux at 15 years and I'm getting different answers to what my pay will be or % of retirement pay. Would I get the 70% per DOD, 50% normal retirement or stay at the 40% due to the redux? I was told and from I understand from websites that I would fall under a normal 50% as I'm being medical discharge and then just get the VA 100% on top of that. Can anyone break this down for me? Just trying to get an understanding of what to expect.

I took the redux and was medically retired at 19.3, from what I was told as well as what Ron told you, the redux will not effect you like it would a strait up retirement, and yes it is all pretty confusing, I recommend you reach out to any politician and get them to support HR333 so Ron can stop doing the entire military’s CRSC and CRDP audits lol
 

Kbert84

PEB Forum Veteran
Registered Member
Thank you for the information.

You have less than 20 years active duty; the REDUX multiplier does not apply to the REDUX retirement plan at under 20 years of service since REDUX is only an active duty retirement plan. You are correct in that you are not eligible for CRDP based on the info you provided.

If your disability is found to be permanent and is rated at 30 percent or greater, or you have 20 or more years of service, you will be placed on the Permanent Disability Retired List (PDRL).

Your retired pay will be computed using one of two methods.

  • Your disability percentage, referred to as Method A.
  • Your years of active service, referred to as Method B.
Your pay will be computed based on whichever method is more beneficial for you.

Method A for you based on info you provided: Average of highest 36 months of base pay x 40% = gross disability pay

Method B for you based on info you provided: Average of highest 36 months of base pay x 41.25% = gross retired pay*
*16.5 years x 2.5% = 41.25 %

Your gross retired pay will be reduced by the amount of VA compensation received. If you had CRSC approved, some of the "reduced" retired pay could be replaced.
https://www.dfas.mil/retiredmilitary/disability/crsc.html <----CRSC LINK

Ron
Thank you!
 
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