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Requesting CRSC calculation

169749942

PEB Forum Regular Member
Registered Member
Good afternoon,

I am requesting a CRSC calculation, below is the requested information. I am still pending final PEB paperwork which is why I am providing the high-3.

1. High three base pay average: $6,887.28
2. DoD disability retirement percentage: 50%
3. Years/months of active duty: 12 years, 8 months
4. VA percentage/compensation: 100% P&T - $3321.85, Spouse only
5. Projected CRSC: 100%
6. Qualify for another type of retirement? No
7. Blended retirement? No

Thank you in advance.
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Good afternoon,

I am requesting a CRSC calculation, below is the requested information. I am still pending final PEB paperwork which is why I am providing the high-3.

1. High three base pay average: $6,887.28
2. DoD disability retirement percentage: 50%
3. Years/months of active duty: 12 years, 8 months
4. VA percentage/compensation: 100% P&T - $3321.85, Spouse only
5. Projected CRSC: 100%
6. Qualify for another type of retirement? No
7. Blended retirement? No

Thank you in advance.
Hello @169749942 ,

Estimate using the info you provided.

A. 6887.28 x 50% = 3443.64 retired pay
B. 3443.64 - 3321.85 = 121.79 residual retired pay
C. AD 12.67 x 2.5% = 31.68% longevity multiplier
D. 6887.28 x 31.68% = 2181.89 longevity portion of retired pay & CRSC ceiling
E. 2181.89 - 121.79 = 2060.10 CRSC if your approved % is 100% which would be higher than the longevity
F. Payments each month based on your info:
--VA = 3321.85
--DFAS residual retired pay = 121.79
--DFAS CRSC = 2060.10

Thank you for furnishing exactly what was needed to compute your CRSC.

Ron
 

Bprin10

PEB Forum Regular Member
Registered Member
Hello @169749942 ,

Estimate using the info you provided.

A. 6887.28 x 50% = 3443.64 retired pay
B. 3443.64 - 3321.85 = 121.79 residual retired pay
C. AD 12.67 x 2.5% = 31.68% longevity multiplier
D. 6887.28 x 31.68% = 2181.89 longevity portion of retired pay & CRSC ceiling
E. 2181.89 - 121.79 = 2060.10 CRSC if your approved % is 100% which would be higher than the longevity
F. Payments each month based on your info:
--VA = 3321.85
--DFAS residual retired pay = 121.79
--DFAS CRSC = 2060.10

Thank you for furnishing exactly what was needed to compute your CRSC.

Ron
Ron, I posted an initial thread (awaiting approval to go public) based on a similar set of criteria and this largely answered that question, particularly in reference to the tax situation (which I now understand that math). I am not far along enough in the PEB to know if I will qualify for a 100% CRSC offset, but I have to assume so, and this answered 75% of my question. If you see that post and choose to reply, I thank you, but I think I have an understanding. Fire away if you do see it and I am missing something significant. Thanks again for all you do!
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
I am glad we could help...

Take care,
Ron
Ron, I posted an initial thread (awaiting approval to go public) based on a similar set of criteria and this largely answered that question, particularly in reference to the tax situation (which I now understand that math). I am not far along enough in the PEB to know if I will qualify for a 100% CRSC offset, but I have to assume so, and this answered 75% of my question. If you see that post and choose to reply, I thank you, but I think I have an understanding. Fire away if you do see it and I am missing something significant. Thanks again for all you do!
I have no idea what your post states. Your name shows one post...the one above this one. If I see it; I will reply. I do not remain on site 24/7 though.

Ron
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello,

Re: " I am not far along enough in the PEB to know if I will qualify for a 100% CRSC offset."

I can comment on that remark. CRSC is not an offset. CRSC is a special compensation that replaces waived retired pay. The VA reduction is often referred to as "VA Offset."

CRSC is not a negative (i.e., a reduction or offset); it is a positive in that it gives back (replaces) waived retired pay.

Ron
 

Bprin10

PEB Forum Regular Member
Registered Member
I am glad we could help...

Take care,
Ron

I have no idea what your post states. Your name shows one post...the one above this one. If I see it; I will reply. I do not remain on site 24/7 though.

Ron
This is correct, Ron. Thank you for the reply. I am sure it is on hold with the mods, as it was my first post. I have been reading your posts on this forum for months now, so I figured that I'd get out in front if it and let you know because you have probably been answering questions related to CHPT 61 retirees (like I will be shortly) and CRSC + CRSC for years now. I can make it too easy, though. In lieu of seeing my post ( I can now follow your other math pretty well), my question was: Is there any scenario where a post 20 LOS (22 years, or 55% in my case), high-36 retiree with 100% VA at the single rate has most, if not all of his otherwise taxable LOS pension converted to a tax free benefit through CRSP?
Hello,

Re: " I am not far along enough in the PEB to know if I will qualify for a 100% CRSC offset."

I can comment on that remark. CRSC is not an offset. CRSC is a special compensation that replaces waived retired pay. The VA reduction is often referred to as "VA Offset."

CRSC is not a negative (i.e., a reduction or offset); it is a positive in that it gives back (replaces) waived retired pay.

Ron
Ron,

Thank you for the reply. I have been reading your posts on this forum for months now, so I figured that I'd get out in front if it and let you know because you have probably been answering questions related to IDES retirees (like I will be shortly) and CRSC + CDRP for years now. I can try to make my question as straight forward and easy as possible.

Is there any scenario that you know of, where a post 20 LOS (22 years, or 55% in my case), high-36 (as an E8 for the last three years) retiree with 100% VA at the single rate, can have most of, if not all of his otherwise taxable LOS pension converted to a tax free benefit through CRSC? This is assuming 75% DoD and 100% CRSC.

I cannot hit you with numbers yet, but I have a feeling this *could* be my scenario shortly, so I am trying to feel out if this is a possibility (as others that have medically retired have told me recently, to which I am trying confirm or refute). I have been reading and searching for a while, but havent come across this exact scenario. Clearly, taking one's gross effective taxable income down to the lowest possible number would probably be the most advantageous route, especially as I do not plan on re-entering the workforce and exercising my GI BILL and Army College Fund Kicker when I take the boots off.

If this has been posed before and you have already done the due diligence, please point me in the right direction and I'll do the math.

Thank you again!

To the OP, sorry to bogart your thread-trying to wrap my head around this.
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello @Bprin10

Although I am no longer a moderator, the owner of this site apparently allowed me to keep certain tools. I found the following:

Firstly, thank you to all here that have served. I greatly appreciate all of the work done here to empower through knowledge; the IDES and VA system is...(what's the euphemism?) not perfect. Anyway, I'll get to brass-tax.
I am in the IDES system and my final VA C&P appointment (vision) is on Thursday. My C&Ps all went according to what I expected and I fully anticipate that I will have a high DoD rating and a max VA rating.

1. I am at 22 years of (all "good" AD) service
2. I am an Army MSG/1SG (11Z) and have fully actualized my "High-36" at this rank
3. I am not married and have no children
4. The condition that placed me into IDES is a back injury (surgery required) that occured in combat, but was exacerbated through life as a senior NCO in the Infantry. I have many other claims that "should" meet the criteria for combat related, or through an instrumentality of war, but are unquestionably service connected.

After many discussions with vets in a similar line of work, and who are receiving benefits from the VA ( a couple actually are medically retired as well-they are GS employees at my current assignment), I am running into what appears to be conjecture from some of them about my potential benefits moving forward. I have searched this forum a lot, but perhaps my keywords aren't taking, or I am plagued again by knuckle-dragger syndrome (which I never discount).

BLUF: If I were to meet the 75% DOD and 100% VA threshold, what is my best course of action? At this point, I am vaguely familiar (thanks to many here; a resource not easily found elsewhere on the interwebs) with how my concurrent receipt of benefits "should" work. That said, what is the maximum benefit (in regards to taxes, specifically) if a SM over 20 would get 100% DoD and VA?

I have had more than one individual tell me that they make more than what their High-36 payout would have been, due to a medical retirement (DOD % above 75%), and they stated that they only pay federal taxes on a very small portion of their retirement, due to the high DoD disability percentage (All great guys, so I assume that they are just uninformed, but it could be my inability to understand the nuance here). I am aware that the VA 100% payout is a tax-free entitlement, in addition to my DoD pension (CRDP), but I'd never be entitled to more compensation than my LOS retirement (55% LOS + VA entitlement 100%, correct?

In closing (and for clarity), can someone please explain to me if there is a scenario like the above stated...I do not want to be the one that is uninformed when it is my time to make a decision on my benefits and financial future.

I thank any of you kind enough to enlighten me in advance!

Comments:

1. If your DoD disability retirement is at 80% thru 100%, your disability retired pay multiplier would be 75% (the max).
2. Your retired pay in the scenario you described would be High three average base pay x 75% = retired pay under Chapter 61
3. Continuing on with that scenario: Your retired pay would be reduced by the amount of your VA compensation. If there is residual retired pay (left over from the reduction), you get to keep it.
4. Since you qualify for another type retirement (regular, 20+yrs), you will be eligible for CRDP if your VA rating is 50% or more.
5. CRDP will restore the longevity portion of the waived retired pay. In your case, that will be average high three base pay x 55% (your case) = longevity portion of retired pay
6. The combination of CRDP and residual retired pay cannot exceed the amount of the longevity retirement (if you had it).
7. Basically, you end up with all your VA compensation and the value of your longevity (22 yrs AD) retirement amount.

8. CRSC: A Supplement to CRSC Information <---see this link for a collection of CRSC info.
9. Recommendations: Take CRSC if the approved percentage by your service is the same as your VA comp percentage. If it is less than the VA comp percentage, you likely will lose money by taking CRSC; therefore in that case, CRDP is the better choice in my opinion.
10. CRSC is non-taxable and the combination of CRSC and residual retired pay cannot exceed the longevity amount computed.

Ron
 
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Bprin10

PEB Forum Regular Member
Registered Member
Hello @Bprin10

Although I am no longer a moderator, the owner of this site apparently allowed me to keep certain tools. I found the following:

Firstly, thank you to all here that have served. I greatly appreciate all of the work done here to empower through knowledge; the IDES and VA system is...(what's the euphemism?) not perfect. Anyway, I'll get to brass-tax.
I am in the IDES system and my final VA C&P appointment (vision) is on Thursday. My C&Ps all went according to what I expected and I fully anticipate that I will have a high DoD rating and a max VA rating.

1. I am at 22 years of (all "good" AD) service
2. I am an Army MSG/1SG (11Z) and have fully actualized my "High-36" at this rank
3. I am not married and have no children
4. The condition that placed me into IDES is a back injury (surgery required) that occured in combat, but was exacerbated through life as a senior NCO in the Infantry. I have many other claims that "should" meet the criteria for combat related, or through an instrumentality of war, but are unquestionably service connected.

After many discussions with vets in a similar line of work, and who are receiving benefits from the VA ( a couple actually are medically retired as well-they are GS employees at my current assignment), I am running into what appears to be conjecture from some of them about my potential benefits moving forward. I have searched this forum a lot, but perhaps my keywords aren't taking, or I am plagued again by knuckle-dragger syndrome (which I never discount).

BLUF: If I were to meet the 75% DOD and 100% VA threshold, what is my best course of action? At this point, I am vaguely familiar (thanks to many here; a resource not easily found elsewhere on the interwebs) with how my concurrent receipt of benefits "should" work. That said, what is the maximum benefit (in regards to taxes, specifically) if a SM over 20 would get 100% DoD and VA?

I have had more than one individual tell me that they make more than what their High-36 payout would have been, due to a medical retirement (DOD % above 75%), and they stated that they only pay federal taxes on a very small portion of their retirement, due to the high DoD disability percentage (All great guys, so I assume that they are just uninformed, but it could be my inability to understand the nuance here). I am aware that the VA 100% payout is a tax-free entitlement, in addition to my DoD pension (CRDP), but I'd never be entitled to more compensation than my LOS retirement (55% LOS + VA entitlement 100%, correct?

In closing (and for clarity), can someone please explain to me if there is a scenario like the above stated...I do not want to be the one that is uninformed when it is my time to make a decision on my benefits and financial future.

I thank any of you kind enough to enlighten me in advance!

Comments:

1. If your DoD disability retirement is at 80% thru 100%, your disability retired pay multiplier would be 75% (the max).
2. Your retired pay in the scenario you described would be High three average base pay x 75% = retired pay under Chapter 61
3. Continuing on with that scenario: Your retired pay would be reduced by the amount of your VA compensation. If there is residual retired pay (left over from the reduction), you get to keep it.
4. Since you qualify for another type retirement (regular, 20+yrs), you will be eligible for CRDP if your VA rating is 50% or more.
5. CRDP will restore the longevity portion of the waived retired pay. In your case, that will be average high three base pay x 55% (your case) = longevity portion of retired pay
6. The combination of CRDP and residual retired pay cannot exceed the amount of the longevity retirement (if you had it).
7. Basically, you end up with all your VA compensation and the value of your longevity (22 yrs AD) retirement amount.

8. CRSC: A Supplement to CRSC Information <---see this link for a collection of CRSC info.
9. Recommendations: Take CRSC if the approved percentage by your service is the same as your VA comp percentage. If it is less than the VA comp percentage, you likely will lose money by taking CRSC; therefore in that case, CRDP is the better choice in my opinion.
10. CRSC is non-taxable and the combination of CRSC and residual retired pay cannot exceed the longevity amount computed.

Ron
Acknowledge all, Ron. Thank you for the speedy reply! This is exactly what I assumed. I am just happy to soon be free again. Enjoy your evening!
 

toppe

PEB Forum Regular Member
Registered Member
Hi Ron,
Please assist with my new CRSC computation, I tried using the spreadsheet calculator but I'm sucking.
11 years 5 months 29 days service - Chp. 61 retireee
VA Rating: (100%) $3910.74 ,
Current Army pay $0 (Longevity pay would be $2,738 without VA offset)
Current CRSC Rating 70% Combat Injury
Married with 5 Dependent children under 18.
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hi Ron,
Please assist with my new CRSC computation, I tried using the spreadsheet calculator but I'm sucking.
11 years 5 months 29 days service - Chp. 61 retireee
VA Rating: (100%) $3910.74 ,
Current Army pay $0 (Longevity pay would be $2,738 without VA offset)
Current CRSC Rating 70% Combat Injury
Married with 5 Dependent children under 18.
Hello,

Please provide the following in one reply:
1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) As an alternative (and better) cite the gross retired pay on the most recent DFAS RAS. Indicate which you are furnishing.
2.--DoD disability percentage
3. --Active duty years and months (or active duty equivalent for RC members)
4. --VA compensation
percentage;
amount;
dependents by category;
and ages of dependent children.
Also provide information pertaining to any SMCs you receive.

5.--Projected or approved CRSC percentage by your service.
6.--Whether you qualify for another type retirement and whether you transitioned to the blended retirement system
7.--Did you receive a REDUX/CSB payment?
8.--Did you accept the Blended Retirement program option?

Ron
 

toppe

PEB Forum Regular Member
Registered Member
Hello,

Please provide the following in one reply:
1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) As an alternative (and better) cite the gross retired pay on the most recent DFAS RAS. Indicate which you are furnishing.
2.--DoD disability percentage
3. --Active duty years and months (or active duty equivalent for RC members)
4. --VA compensation
percentage;
amount;
dependents by category;
and ages of dependent children.
Also provide information pertaining to any SMCs you receive.

5.--Projected or approved CRSC percentage by your service.
6.--Whether you qualify for another type retirement and whether you transitioned to the blended retirement system
7.--Did you receive a REDUX/CSB payment?
8.--Did you accept the Blended Retirement program option?

Ron
Thanks,
1. Gross Retired Pay: $2,738
2. 70%
3. 11 YRS 5 MON
4. 100%; $3,910.74 (including SMC-K1 $111.74); Wife and 5 kids under 18.
5. 70%
6. Do not qualify for any other compensation
7. No REDUX/CSB
8. No
 
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RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Thanks,
1. Gross Retired Pay: $2,738
2. 70%
3. 11 YRS 5 MON
4. 100%; $3,910.74 (including SMC-K1 $111.74); Wife and 5 kids under 18.
5. 70%
6. Do not qualify for any other compensation
7. No REDUX/CSB
8. No
Hello,

Here is your estimate:

1. Gross 2738 divided by 70% = ~3911 high three
2. Your gross is reduced to zero net pay due to amount of VA comp
3. 11.42 AD yrs x 2.5%= 28.55% longevity multiplier
4. 3911 x 28.55% = 1116.59 longevity portion of retired pay
5. CRSC at 70% = More than the longevity amount...the longevity amount is the ceiling
6. Your CRSC will be around 1116.59 based on the info you provided.

Ron
 
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toppe

PEB Forum Regular Member
Registered Member
Hello,

Here is your estimate:

1. Gross 2738 divided by 70% = ~3911 high three
2. Your gross is reduced to zero net pay due to amount of VA comp
3. 11.42 AD yrs x 2.5%= 28.55% longevity multiplier
4. 3911 x 28.55% = 1116.59 longevity portion of retired pay
5. CRSC at 70% = More than the longevity amount...the longevity amount is the ceiling
6. Your CRSC will be around 1116.59 based on the info you provided.

Ron
You Sir are an asset for all of us on this forum, thank you as always!
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
@toppe,

Thank you for your kind words. I enjoy being in the company of veterans.

Ron
 

JLand

New Member
Registered Member
Good afternoon,

I am requesting a CRSC calculation, below is the requested information. PEB/PDA determined I was to be medically retired at 30% Army disability, but a COAD waiver was granted, allowing me to retire at 20yrs AFS.

1. High three base pay average: $5,225.90
2. DoD disability retirement percentage: 30%
3. Years/months of active duty: 20yrs
4. VA percentage/compensation: 100% P&T - $3146.42,
5. Projected CRSC: 50% + 30% = 80%
6. Qualify for another type of retirement? No
7. Blended retirement? No

Thank you for assisting!
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Good afternoon,

I am requesting a CRSC calculation, below is the requested information. PEB/PDA determined I was to be medically retired at 30% Army disability, but a COAD waiver was granted, allowing me to retire at 20yrs AFS.

1. High three base pay average: $5,225.90
2. DoD disability retirement percentage: 30%
3. Years/months of active duty: 20yrs
4. VA percentage/compensation: 100% P&T - $3146.42,
5. Projected CRSC: 50% + 30% = 80%
6. Qualify for another type of retirement? No
7. Blended retirement? No

Thank you for assisting!
Hello @JLand ,

With 20 years active duty and a CH 61 retirement, the following applies. Note your item 6: Per your info, you qualify for two retirement types. Disability and regular 20 years active duty or more.

A. Your retirement computation:
@ 30% DoD disability x ~5226 = 1567.80 retirement
@ 50% Longevity multiplier x 5226 = 2613 retired pay--obviously this is the higher amount and the amount DFAS will choose on your behalf.

B. Since you qualify for CRDP, you will receive all your VA comp and all of the 2623 longevity retired pay

C. The VA compensation tables are at 2021 Veterans disability compensation rates | Veterans Affairs <---LINK
The amount for your approved CRSC percentage will be found the VA comp tables shown immediately above.

D. If the CRSC amount at item C is at least 2613, recommend you select CRSC. If it is less, then CRDP would be preferable.

Notes: 50% + 30% is not 80% necessarily in VA World and the services use the same combined ratings table.
CRSC can never be more than the dollar amount of the longevity portion of retired pay--see item D.

Good luck,
Ron
 
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JLand

New Member
Registered Member
Hello @JLand ,

With 20 years active duty and a CH 61 retirement, the following applies. Note your item 6: Per your info, you qualify for two retirement types. Disability and regular 20 years active duty or more.

A. Your retirement computation:
@ 30% DoD disability x ~5226 = 1567.80 retirement
@ 50% Longevity multiplier x 5226 = 2613 retired pay--obviously this is the higher amount and the amount DFAS will choose on your behalf.

B. Since you qualify for CRDP, you will receive all your VA comp and all of the 2623 longevity retired pay

C. The VA compensation tables are at 2021 Veterans disability compensation rates | Veterans Affairs <---LINK
The amount for your approved CRSC percentage will be found the VA comp tables shown immediately above.

D. If the CRSC amount at item C is at least 2613, recommend you select CRSC. If it is less, then CRDP would be preferable.

Notes: 50% + 30% is not 80% necessarily in VA World and the services use the same combined ratings table.
CRSC can never be more than the dollar amount of the longevity portion of retired pay--see item D.

Good luck,
Ron
Ron,

Thank you for the breakdown. Makes it easier to understand VA and DFAS math...

So the CRSC cannot be more than the retirement pay, 2613, and I receive CRDP and CRSC?

Thank you again for your assistance. Much appreciated!

JLand
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Ron,

Thank you for the breakdown. Makes it easier to understand VA and DFAS math...

So the CRSC cannot be more than the retirement pay, 2613, and I receive CRDP and CRSC?

Thank you again for your assistance. Much appreciated!

JLand
Hello @JLand ,

Unfortunately. you cannot receive CRDP and CRSC at the same time. One must choose between the two. There are both considered Concurrent Receipt.

CRDP allows for full receipt of VA compensation and the full dollar amount of the longevity portion or retied pay.

CRSC replaces waived retired pay not to exceed the dollar amount of the longevity portion of retired pay. It can be less if approved CRSC percentage by the service concerned results in an amount less than the longevity. The VA compensation tables are also used for CRSC amounts. VA compensation is also paid the CRSC recipients in all cases.

Ron
 
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JHedges

PEB Forum Regular Member
Registered Member
Good Evening Ron,

Can you help me with my CRSC math? I attempted the calculation and my understanding is that I won't receive any additional compensation from CRSC. Did I do the math right?

1. High three base pay average: $7595
2. DoD disability retirement percentage: 60%
3. Years/months of active duty: 13yr
4. VA percentage/compensation: 80%, $2060, Wife and 3 kids under 18,
5. Approved CRSC: 60%
6. Qualify for another type of retirement? No
7. REDUX/CSB/Blended Retirement? No

Thanks in advance!
-Jordan
 
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