REDUX Retirement plan w/ Med Retirement 20yrs 29days

[HEADSPACEnTIMING]

Ok, my mind is blown; I’m trying to figure out what my pay will be, MEB after 20. I’m unsure what I’m getting from VA/CRSC/Retirement because I took the CSB/REDUX. Some things are joining, and some things are affecting other amounts. The person at RSO confused me. At the end of the day, what is going to be paid to me, and from which department? Thank you for any assistance anyone can provide.



1.--Average high three for basic pay: $5,126 (estimated)
2.--DoD disability percentage: 70%
3. --Active duty years and months 20 Years & 29 days.
4. --VA compensation: 100%; $3772.22 (Wife & Daughter)
5.--Projected or approved CRSC percentage by your service: 100%
6.--Whether you qualify for another type of retirement and whether you transitioned to the blended retirement system: Not qualified
7.--Did you receive a REDUX/CSB payment? Yes 30k
8.--Did you accept the Blended Retirement program option? No

 

[RonG]

Hello @HEADSPACEnTIMING

Using your info…(and I infer you are not a reservist and you have 20 years active duty)

1. Your disability retirement pay will be 5126 x 70% = DoD disability retirement pay
2. It will be reduced by 3772.22 (the VA amount)
3. Your CRDP, which is a restoration of retired pay, will be the longevity portion of your retired using the REDUX formula.
4. CRSC would involve the same formula.
5. I visited with DFAS a couple of months ago and they confirmed the REDUX formula would be used In a case like yours.

6. The VA pays VA compensation. DFAS pays retired pay; CRDP; residual retired pay; and CRSC.

7. The DOD has some calculators that might include the REDUX. Recommend checking them out. Edited to add: a REDUX calculator is at: Defense Finance and Accounting Service > RetiredMilitary > plan > estimate > csbredux <—-LINK

Ron

Added:
Your CRDP using REDUX would roughly be 40% x 5126 = CRDP of $2050 from DFAS
You would also receive your VA comp of 3772.22 FROM VA
Again, using your data and the figures are rough.
IF you had CRSC approved at 100% and chose it rather than CRDP, it too would be $2050, the Redux longevity amount
DFAS offers:
CSB/REDUX
If you retired under CSB/REDUX, your retired pay multiplier will be reduced by 1 percent for each full year. This reduction remains in effect up to the age of 62 when your retired pay will be restored to the same amount paid under the High-3 System.
Non-Disability retirees will have their percent multiplier reduced by:

• 1 percent for each full year of creditable service less than 30, and
• 1/12th of 1 percent for each full month of creditable service less than a full year.

This will also affect your retired pay by reducing the cost-of-living adjustments (COLA) by one percent.
@50% for 20 years, reduced by (10 years x 1%) = 40% REDUX multiplier

Note: Although the REDUX does not apply to the computation of Disability Retired Pay, it DOES apply to the computation of CRDP & CRSC (for longevity determination). Per DFAS on at least two occasions. Once you receive your first payment, please return with info pertaining to how REDUX impacted your CRDP/CRSC. No one else has done so.

 

[RonG]

Reference: A REDUX computation that was in agreement with information on the DFAS RAS

To: @HEADSPACEnTIMING

The following does not pertain to your case, except he had a similar REDUX situation. My computation in 2016 on another board produced a figure that mirrored the DFAS computation information on the RAS.

2016 Computation:

1. $3330 medical retirement pay less $3118 VA waiver = $212 residual

2. 20 yr 9 mo = 51.875% regular longevity multiplier

3. Regular multiplier is reduced is reduced by 1% for each year short of 30 years and 1/12 for each full month short = 9.25%

4. 51.875% regular multiplier less 9.25% short = 42.625% redux multiplier for longevity retirement

5. $3330/0.70 = $4757.14 high three ave base pay ($3330 is 70% of x; $4657.14 is x)

6. $4757.14 x 42.625% redux multiplier = $2027.73 (note: RAS shows $2028 as retirement pay)

It appears correct to me, but I am not a REDUX expert. For a more complete explanation, recommend you request an audit by DFAS in writing. Note: $212 residual + $1816.45 CRDP = $2028.45

Regards,
Ron

Edited to correct residual amount and show residual plus CRDP = $2028
===========
Ron

 

[HEADSPACEnTIMING]

Alright, the final numbers are as follows,

from DFAS eRAS
Retired Gross Pay: $3,485 "This is higher almost 66.6% of my base pay." E7 20yr base $5232.60
VA Waiver: -$996 "I thought CRDP took away the offset?"
Total Ret Paid: $2,489

Note in DFAS:
BASED ON THE COMPENSATION AMOUNT YOU RECEIVE FROM THE DEPARTMENT OF VETERANS AFFAIRS(VA)
AND YOUR RETIRED PAY, YOUR CONCURRENT RETIREMENT DISABILITY PAY(CRDP) AMOUNT IS
$2,489.00.

VA disability is 100% with Spouse and Child: $3971.78 I haven't received the actual pay yet but that's the amount they listed in the decision letter.

Some more info:
MEB: 70% DOD rating Combat Related
VA: 100%
20yrs AD
Took Redux

Something seems off..

 

[HEADSPACEnTIMING]

wired thing is when I log into VA.gov and look at my disability pending payment it says;

 

[RonG]

Hello @HEADSPACEnTIMING

Comments (see item 6 for summary).

1. “Retired Gross Pay: $3,485”. 3485/70% = 4978.57 average high three base pay
Average high three base pay is the total of the highest 36 months of base pay divided by 36
Re: “Retired Gross Pay: $3,485 "This is higher almost 66.6% of my base pay. E7 20yr base $5232.60”. The final pay is not used; the average high three is part of the equation.

2. “VA Waiver: -$996 "I thought CRDP took away the offset?" Since you took the REDUX/CSB, the CRDP restoration of the VA offset is 40% of the longevity portion for 20 years rather than the “regular” restoration of 50% of the longevity portion for 20 years
[added: It does not appear your CRDP was computed at 40% [REDUX] rather than 50% for 20 years AD]

3. Note: CRDP does not restore waived retired pay in excess of the longevity portion of retired pay for anyone.

4. 996 + 2489 = 3485. 4978.57 high three x 70% = 3485.

5. Note in DFAS:
BASED ON THE COMPENSATION AMOUNT YOU RECEIVE FROM THE DEPARTMENT OF VETERANS AFFAIRS(VA)
AND YOUR RETIRED PAY, YOUR CONCURRENT RETIREMENT DISABILITY PAY(CRDP) AMOUNT IS
$2,489.00. Comment: 4978.57 high three x 50% = 2489

6. High three 4978.57 x 70% = 3485 retired pay
High three 4978.57 x 50% = 2489 longevity portion of retired pay @ 50%
3485 minus 2489 = 996 waived retired pay in excess of longevity amount at 50%

Ron

cc: @Provis