Received my CRSC Approval letter today.

Dburdyck

New Member
Registered Member
An estimate was provided last Saturday.

Estimate.

1. High 3, 3563.58 x 30% DoD = 1069.06 retired pay
2. All retired pay is waived due to receipt of VA compensation that is >= retired pay
3. 10.33 yrs AD x 2.5% = 25.8% multiplier
4. 3563.58 x 25.8 = 919.40 longevity portion of retired pay
5. 50% CRSC, spouse and 2 children = 1039.41 (current tables on this date)
6. Amount at item 4 is less than amount at item 5 = CRSC 919.40

Based on the information you provided, your CRSC will be about 919.40. Earlier periods would be slightly less.

Not everyone receives retroactive payment of CRSC, but if your approval shows a retroactive effective date and you waived retired pay for the retro period, you should receive a retroactive payment.

Ron

added:
The link provided will a computation that is close. Some of the elements have not been updated since 2014 (e.g., VA comp rates are outdated).
Ron,

I have been following your help that you have provided to others while waiting for decision letter to come back and now that it has. I was hoping you would help me out with confirmation of what my CRSC payment may be. Here is the information you were asking for previously for.

1. High 3= 4566.60 not paid in full due to Career Status Bonus (loss of 10%) and VA waiver offset of 1244.00
2. DOD percentage is 70
3. Total time is service 20yrs 8 months 19 days
4. CRSC percentage 80%
5. VA percentage 100% $3437 with spouse and 2 children but I also get SMC-k allowance of like 108 that I am thinking I will lose if I elect CRSC. Lastly... the most confusing part of coming up with the benefit amount is ( will that be the entire amount I receive or is that the amount that will be restored to overall retirement benefit payment. Everything I read and have researched points to the recoupment of loss funds from the offset, but then I came across something that said you can’t receive both retirement money and CRSC funds... so I am lost now... was this process even worth applying for. Thanks for your support and I appreciate the information and guidance.
 

RonG

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Ron,

I have been following your help that you have provided to others while waiting for decision letter to come back and now that it has. I was hoping you would help me out with confirmation of what my CRSC payment may be. Here is the information you were asking for previously for.

1. High 3= 4566.60 not paid in full due to Career Status Bonus (loss of 10%) and VA waiver offset of 1244.00
2. DOD percentage is 70
3. Total time is service 20yrs 8 months 19 days
4. CRSC percentage 80%
5. VA percentage 100% $3437 with spouse and 2 children but I also get SMC-k allowance of like 108 that I am thinking I will lose if I elect CRSC. Lastly... the most confusing part of coming up with the benefit amount is ( will that be the entire amount I receive or is that the amount that will be restored to overall retirement benefit payment. Everything I read and have researched points to the recoupment of loss funds from the offset, but then I came across something that said you can’t receive both retirement money and CRSC funds... so I am lost now... was this process even worth applying for. Thanks for your support and I appreciate the information and guidance.
Hello Dburdyck,

I have a few initial comments about CH 61 situations and then I will return to do a computation in the morning. I am deferring the computation since it involves REDUX which is more complicated than most of the cases presented here.

1. Is this all active duty time or "good years"? "Total time is service 20yrs 8 months 19 days." If it is AD, you should already receive CRDP which restores retired pay; however, in REDUX cases the REDUX formula is used for CRDP. Your DFAS RAS will have a comment on page two concerning CRDP if you are receiving it. If the comment is present, please report that info.

2. CRDP restores waived retired pay for those eligible. CRSC replaces waived retired pay (some or all) for those eligible and approved.
CRDP and CRSC cannot be paid simultaneously; you have to choose one or the other. VA compensation is paid at the same time for whichever choice you make.

3. Neither CRSC nor CRDP replaces/restores the disability portion of retirement pay.

4. SMC-K is often approved as a CRSC item. The VA is the actual agency that pays SMC and other VA compensation items.

Ron
 

Dburdyck

New Member
Registered Member
Hello Dburdyck,

I have a few initial comments about CH 61 situations and then I will return to do a computation in the morning. I am deferring the computation since it involves REDUX which is more complicated than most of the cases presented here.

1. Is this all active duty time or "good years"? "Total time is service 20yrs 8 months 19 days." If it is AD, you should already receive CRDP which restores retired pay; however, in REDUX cases the REDUX formula is used for CRDP. Your DFAS RAS will have a comment on page two concerning CRDP if you are receiving it. If the comment is present, please report that info.

2. CRDP restores waived retired pay for those eligible. CRSC replaces waived retired pay (some or all) for those eligible and approved.
CRDP and CRSC cannot be paid simultaneously; you have to choose one or the other. VA compensation is paid at the same time for whichever choice you make.

3. Neither CRSC nor CRDP replaces/restores the disability portion of retirement pay.

4. SMC-K is often approved as a CRSC item. The VA is the actual agency that pays SMC and other VA compensation items.

Ron

Ron,

Thanks for responding in a rapid manner. So yes to answer two of your questions. All the time was AD time and I have been already recovering CRDP since my retirement due to disability was approved Aug 2017, but as you said the redux is what is partially unique in my case. I thought I would not be affected by this since it was due to no fault of my own that I could not reach the 23 year mark to be paid 50% retirement. Blah blah blah... anyway; the lawyer I saw on the way out of the military contacted a GS friend of his at DFAS and the rep told me that because I took CRDP that the redux comes into play as apart of the equation and if I was approved for CRSC that the amount of my return would be better. So long story short I applied and now I have been approved. What keeps confusing me is the difference between this restoration of retired pay that was waived... I don’t understand that and then you pointed out that neither CRDP nor CRSC restores the disability portion of retirement. What exactly is the disability portion of retirement? Thanks for your help. I would be happy to send you a snapshot of the estimation page my peblo had me signed when I exited.. no PII ofcourse. It reflects my base pay ( high three) with the time in service I accrued at the current Time ( 20 years and 4 months; I wasn’t quite retired yet) and it shows me one amount that looks like 50% retirement and then it shows another equation below it with 70% dod disability rating with a higher payment amount... that second amount looks closer to what I ended up with on my retirement statement minus the 1200 or so for VA offset.. so at this point it doesn’t seem like I will get any more money and it was a waist of time. If that is the case... then I am fine with it because I feel blessed already, but it’s frustrating to keep getting different information from folks who regard themeselves as SME’s; you know

V/R
David

I would be happy to show you a snapshot of my ERAS as well so maybe you could better explain to me what my situation is fully. Thanks again
 

Dburdyck

New Member
Registered Member
Sorry.. one thing I forgot. My acceptance for CRSC letter clearly spelled out that It would not regard my SMC-K payment as combat related and therefore would not count within CRSC if I elected it
 

RonG

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David,

I will put my email address in your mailbox so you can send the documents.

The disability portion of your retirement is the amount that exceeds your longevity portion of retirement pay using REDUX in your case in computing the longevity amount.

CRSC is not taxable. CRDP is taxable in most cases.

Ron
 

RonG

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Staff Member
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David,

I will put my email address in your mailbox so you can send the documents.

The disability portion of your retirement is the amount that exceeds your longevity portion of retirement pay using REDUX in your case in computing the longevity amount.

CRSC is not taxable. CRDP is taxable in most cases.

Ron
Hello David,

I have given the REDUX situation some thought since our last discussion.

A few initial remarks:
1. You recently confirmed you are receiving CRDP. Consequently, the computation of the longevity portion of your retirement has already been determined and reported on page two of your DFAS RAS. The REDUX formula would have been used.

2. You mentioned, “ ...anyway; the lawyer I saw on the way out of the military contacted a GS friend of his at DFAS and the rep told me that because I took CRDP that the redux comes into play as apart of the equation and if I was approved for CRSC that the amount of my return would be better. So long story short I applied and now I have been approved.” The report by the GS employee is correct in that CRSC is non-taxable. However, your approved CRSC percentage AND the REDUX computation formula are factors in the final result. Incidentally, DFAS-Cleveland currently has approximately 2,250 operational employees and 400 corporate employees. Based on many discussions with the CRDP/CRSC section/branch/dept of Retired Pay, I doubt many of the 2,000+ employees have CRSC computation expertise; however, the rep might have been one of the few.

3. Reference: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017
VOLUME 7B, CHAPTER 63: “COMBAT-RELATED SPECIAL COMPENSATION (CRSC)”

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees

B. Reductions for periods on or after January 1, 2013.
1. Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).

4. The law cited at item three requires the use of the REDUX formula in determining the “will not exceed” amount in your case. It could be less IF the amount of your approved CRSC percentage is lower than the REDUX amount. Edited to add: CRSC percentage 80%, spouse and 2 children under 18 (SMC-k not approved): $1,867.69 + $67.00 = $1934.69. If $1934.69 is less than the REDUX amount for longevity, then $1934.69 will be the CRSC. If the REDUX amount less than $1934.69, the REDUX amount will be the CRSC. CRSC is non-taxable.

So...your CRSC will not be more than the gross retired pay amount already determined thru the CRDP computation and it could be less. The DFAS will automatically pay the higher amount but give you a chance to change that selection. The waived disability portion of retired pay is not “given back” via CRDP or CRSC.

Ron
 

Jason Perry

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The DFAS will automatically pay the higher amount but give you a chance to change that selection.
Just wanted to add to RonG's excellent post a little bit about the reasons for anyone electing the "lesser" payable amount (CRDP vice CRSC or vice versa).

There are relatively rare instances where folks have legal judgments or court orders against them that require payment of certain monies. Usually, this is in the context of divorce judgments. The issues depend on state law, but, there are some instances where courts will not touch payments if they are CRDP or CRSC depending on the wording of judgments (which, also are sometimes the result of a negotiated agreement between the former spouses in the divorce action.). I have to be clear that I have not ever dealt with any such instances in my practices (and may not be clearly stating the issues).

In any event, here is an Army Lawyer article resource that discusses some of the issues with selection of each benefit:

Military Pension Division: The “Evil Twins” – CRDP and CRSC
 
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