Thoroughly confused about my CRSC

jk84

New Member
Registered Member
First of all, sorry. I'm sure this has been discussed 1000 times, but I'm still having a hard time grasping it.
I feel like I'm missing out on money, but I also don't know much about this.
Last year, I was medically retired from the Army at 70%. I was in for about 15 years and the number on my paperwork said my retirement would be a little over $2500. I've got 80% VA disability, which is a little over $1900. I was just approved for CRSC and from what I can tell, I'm getting my VA compensation, then with retirement and CRSC, I'm roughly getting an additional $1000. I was thinking I was going to get close to the $2500 for retirement.
What am I missing? Thanks for any knowledgeable response.
Sorry for the rough numbers, I dont have my paperwork in front of me
 
Hello,

CRSC generally does not replace all the waived retired pay for a CH 61 retiree. The CRSC entitlement is the LESSER of
--Longevity portion of retired pay
--The CRSC approved percentage amount which is found in the VA compensation tables.

Basically, the following is what is needed for someone to compute your CRSC in the PEB forum:
Needed within one reply:
--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.
--DoD disability percentage
--Active duty years and months (or active duty equivalent for RC members)
--VA compensation percentage; amount; dependents by category; and ages of dependent children. Also provide information pertaining to any SMCs you receive.
--Projected or approved CRSC percentage by your service.
--Whether you qualify for another type retirement and whether you transitioned to the blended retirement system
--Did you receive a REDUX/CSB payment?

I should add, incorrect data = incorrect estimate. I offer that because you said, " I was in for about 15 years." The precise number of years and months are necessary...the same is true for equivalent years and months for reservists.

Ron
 
Hello,

A few additional remarks.

You said, "Last year, I was medically retired from the Army at 70%. I was in for about 15 years and the number on my paperwork said my retirement would be a little over $2500. I've got 80% VA disability, which is a little over $1900. I was just approved for CRSC and from what I can tell, I'm getting my VA compensation, then with retirement and CRSC, I'm roughly getting an additional $1000. I was thinking I was going to get close to the $2500 for retirement.
What am I missing? "

1. Your DoD disability retired pay would be average high three base pay x 70% = disability retired pay
2. You disability retired pay would be reduced by the amount of your VA compensation. You did not provide that info, but it might have reduced your retired pay to zero.
3. Precisely 15 years active duty x 2.5% = 37.5% longevity multiplier
4. Average high three base pay x 37.5% = longevity portion of retired pay
5. Your CRSC would be the lesser/lower amount of
--longevity portion of retired pay
or
--The CRSC approved percentage amount, which is found in the VA compensation tables
6. The CRSC amount determined by item 5 when combined with any residual retired pay from the reduction at item 2 cannot exceed the longevity portion of retired pay.

All the information requested in my initial reply would be necessary to analyze your CRSC situation.

Ron
 
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You would need to waive all residual retired pay to get the maximum CRSC the only way to do that would be to increase your VA% to 100% that way you would waive all your retired pay and increase your CRSC to about 1000.
 
You would need to waive all residual retired pay to get the maximum CRSC the only way to do that would be to increase your VA% to 100% that way you would waive all your retired pay and increase your CRSC to about 1000.
And...CRSC can never exceed the longevity portion of retired pay.

Ron
 
Thanks for replying.

1. My high 3: 3656.40
2. DOD disability retirement: 70%
3. Active duty time: 11yrs 6mos. (Didnt realize that reserve time didnt count)
4. VA comp: 80% 1934.69 (spouse, 2 kids under 18)
5. Approved CRSC percentage: 70%
6. Do not qualify for another type of retirement/ did not transition to blended retirement
7. Did not receive redux/CBS

I guess I just figured that getting CRSC meant that I'd get full VA comp and full retirement pay.
Thank you for your help
 
Reserve time does count if you convert it to active duty equivalent. Total creditable points/360

Please reply with your total active duty equivalent.

Ron
 
I mentioned in my first reply:

"--Active duty years and months (or active duty equivalent for RC members) "

It is my understanding (I am not a disability retiree) that your retirement orders would show active duty equivalent as "Disability Retirement xx years xx months" in the bottom half of the document.

Ron
 
Thanks for replying.

1. My high 3: 3656.40
2. DOD disability retirement: 70%
3. Active duty time: 11yrs 6mos. (Didnt realize that reserve time didnt count)
4. VA comp: 80% 1934.69 (spouse, 2 kids under 18)
5. Approved CRSC percentage: 70%
6. Do not qualify for another type of retirement/ did not transition to blended retirement
7. Did not receive redux/CBS

I guess I just figured that getting CRSC meant that I'd get full VA comp and full retirement pay.
Thank you for your help
Hello,
I did not receive your active duty equivalent.

Going with what you did provide:

a. high three 3656.40 x 0.70 = 2559.48 retired pay
b. retired pay minus amount of VA comp: 2559.49 - 1934.69 =624.80 residual retired pay which will reduce your CRSC
c. 11.5 yrs AD x 0.025 = 28.75% longevity multiplier
d. 3656.40 x 0.2875 = 1051.22 longevity portion of retired pay
e. CRSC with spouse and 2 chldren under 18; 70% = 1,636.17 +60
f. CRSC cannot exceed longevity amount
g. 1051.22 -624.80 residual = 426.42 CRSC
h. DFAS will pay: 624.80 residual + 426.42 CRSC = 1051.22
i. VA will pay = 1934.69

The estimate is based on the info you provided.

Ron
 
The following shows your CRSC entitlement IF you had 15 years active duty equivalent:

a. high three 3656.40 x 0.70 = 2559.48 retired pay
b. retired pay minus amount of VA comp: 2559.49 - 1934.69 =624.80 residual retired pay which will reduce your CRSC
c. 15 yrs AD x 0.025 = 37.5% longevity multiplier
d. 3656.40 x 0.375 = 1371.15 longevity portion of retired pay
e. CRSC with spouse and 2 chldren under 18; 70% = 1,636.17 +60; total: 1696.17
f. CRSC cannot exceed longevity amount
g. 1371.15 -624.80 residual = 746.35 CRSC
h. DFAS will pay: 624.80 residual + 746.35 CRSC = 1371.15
i. VA will pay = 1934.69

Some of the base data used in this computation has not been confirmed by the retiree.

In your first post you said, "...then with retirement and CRSC, I'm roughly getting an additional $1000." That appears to be in line with the computation using 11.5 AD years.
g. 1051.22 -624.80 residual = 426.42 CRSC
h. DFAS will pay: 624.80 residual + 426.42 CRSC = 1051.22

Ron
 
"Members retired for disability under 10 U.S.C., Chapter 61, with less than 20 years of creditable service computed under 10 U.S.C. § 1208, and who are qualified for CRSC, on or after January 1, 2013, will have the maximum CRSC payment restrictions. The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed the amount that is equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member. "

Reference: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * November 2019

Ron
 
Looking at an MEB or trying to grind out 7 more years until i hit my 20. Would appreciate some financial estimates to best guide my decision making.

1. High 3 - $7000
2. DoD Disability - 50% (worst case)
3. Active Duty - 13.5 years
4. VA - 100% (most likely)
5. CRSC - 20%
6. No other retirement, BRS, etc
7. No redux/CBS

Thank you for the estimate. It will be helpful for my family and I.
 
Looking at an MEB or trying to grind out 7 more years until i hit my 20. Would appreciate some financial estimates to best guide my decision making.

1. High 3 - $7000
2. DoD Disability - 50% (worst case)
3. Active Duty - 13.5 years
4. VA - 100% (most likely)
5. CRSC - 20%
6. No other retirement, BRS, etc
7. No redux/CBS

Thank you for the estimate. It will be helpful for my family and I.
Hello @swass

This case will be somewhat different from most I have seen. The CRSC percentage you expect (20%) is lower than most.

There are some ceilings that pertain to CRSC for a disability retiree who does not qualify for another type retirement.
--CRSC cannot be more than the reduced/waived retired pay
--CRSC cannot exceed the CRSC percentage approved by one's service (the rates are found in the VA comp tables)
--CRSC cannot exceed the longevity portion or retired pay
--CRSC, when combined with residual retired pay, if any, cannot exceed the longevity portion of retired pay

1. 7000 x 50% = 3500 retired pay based on your 50% projection
2. VA comp @ 100% (dependents and ages unknown) = 3,406.04 with spouse and one child --my guess at dependents
3. 3500 minus 3406.04 VA comp amount = 93.96 residual retired pay
4. 13.5 years (0.5 is six months) x 2.5% = 33.75% longevity multiplier
5. 7000 x 33.75% = 2362.50 longevity portion of retired pay
6. 20% CRSC (no additional amounts for with dependents) = 281.27

7. Based on the information you provided and a guess at your dependents, you will receive under these circumstances:
--DFAS Residual retired pay: 93.96
--DFAS CRSC: 281.27
--VA compensation: 3406.04


Ron
 
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