VA/DOD PAY CALCULATION HELP REQUESTED

JH75

PEB Forum Regular Member
Registered Member
Good Morning all,
I was deemed unfit through PEB and awarded medical retirement through TRDL. Can anyone provide some guidance on what my expected payments will be monthly based on my ratings?

DOD unfitting conditions- Migraines-50% and PTSD (combat related) 50%
Marine Corps Captain O3 pilot with 10 years active duty service.
Base pay- $6,634/month

VA- 100%
I am married with 3 children (all under 18)

I can provide more information as needed. I have done my research and determined what i feel my monthly compensation will be but just wanted to submit my request to the group as Im sure there is more experience than mine on here. If I am 100% VA but on TRDL will I be found P&T? My retirement date is 10 July 2020. None of my percentages are showing up on Ebenefits or on VA.gov or milconnect yet. Will they populate automatically after i receive my DD214?

Any guidance or support yall can provide I am greatly appreciated. Also, if anyone has any questions pertaining to my case (timelines/experience) please let me know.
 
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RonG

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Hello,

All of 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?

Ron
 

JH75

PEB Forum Regular Member
Registered Member
--Average high three for basic pay-$6634
--DoD disability- 75%
--Active duty years and months-10 yrs 4 months
--VA compensation percentage- 100%; 4 dependents total 3 of which are children under 18 (5yrs, 2 yrs, 4 months)
SMC-K
--Projected or approved CRSC percentage by your service.- Have not filed for CRSC yet.
--Whether you qualify foranother type retirement and whether you transitioned to the blended retirement system- NO
--Did you receive a REDUX/CSB payment? NO
 

RonG

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--Average high three for basic pay-$6634
--DoD disability- 75%
--Active duty years and months-10 yrs 4 months
--VA compensation percentage- 100%; 4 dependents total 3 of which are children under 18 (5yrs, 2 yrs, 4 months)
SMC-K
--Projected or approved CRSC percentage by your service.- Have not filed for CRSC yet.
--Whether you qualify foranother type retirement and whether you transitioned to the blended retirement system- NO
--Did you receive a REDUX/CSB payment? NO
Hello,

I will look at this later this morning...I have a curbside pickup in a few minutes.

Meanwhile: What is the total amount of VA compensation you receive from the VA?

I assume you have a DoD rate between 80% to 100% since there is not a 75% DoD disability percentage, although that is the max payable.

I can give you the longevity amount of your retired pay which might be your CRSC, but without a projected CRSC percentage, I cannot provide a comparison. You likely will receive the longevity amount...

Ron
 

JH75

PEB Forum Regular Member
Registered Member
Thanks Ron for the prompt reply. I am still AD with my official retirement date on 30 July 2020. I have received my final ratings decision from both DOD and VA. I was told by my Peblo that I cannot apply for CRSC until after my EAS date. Can you confirm? Also, does DFAS automatically start depositing my offset retired pay into my direct deposit? I cannot seem to get any answers from anyone at DFAS do to still being AD.

Ive attached a copy of my DOD MEB findings sheet (censored of PII) I hope that helps. I feel so lost in the sauce during this transition due to COVID shutting offices down.

Any help is greatly appreciated.
 

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JH75

PEB Forum Regular Member
Registered Member
my basic calculations that I hope you can confirm are this.
DOD retire pay- $6634 (base pay) X 75%= $4975/month
VA Comp w/ spouse, 3 kids under 18 and SMC-K- $110.31+$3406.04+$86.05+$86.05=$3688.05/month
DOD offset= $4975-$3688.05= $1286.95
DOD offset X Colorado state income tax=$1286.95X .0463%= $1227.36 (DOD offset amount after income taxes removed)
New DOD offset retired pay ($1227.36+ total VA disability comp ($3688.05)= $4915.41/month

I hope that it makes sense how I came to those calculations. If any of it does not seem right from your experience please let me know.
 

RonG

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I just returned...have a couple of things to wrap up and then start on your computation.

I compute only gross pay. BTW, I lived in Colorado/Manitou Springs until three years ago...nice place.

Ron
 

RonG

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I just returned...have a couple of things to wrap up and then start on your computation.

I compute only gross pay. BTW, I lived in Colorado/Manitou Springs until three years ago...nice place.

Ron
Hello,

Case.

my basic calculations that I hope you can confirm are this.
DOD retire pay- $6634 (base pay) X 75%= $4975/month Correct IF you used the high three which is = total of highest 36 months base pay divided by 36
VA Comp w/ spouse, 3 kids under 18 and SMC-K- $110.31+$3406.04+$86.05+$86.05=$3688.05/month
DOD offset= $4975-$3688.05= $1286.95 correct residual retired pay
DOD offset X Colorado state income tax=$1286.95X .0463%= $1227.36 (DOD offset amount after income taxes removed)
New DOD offset retired pay ($1227.36+ total VA disability comp ($3688.05)= $4915.41/month

Comments:
--Some rounding differences but I agree with your gross pay computation if you used high three.
--Nice job.

Ron
 

RonG

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I seem to remember Colorado tax laws exempt a certain amount of retirement income for military retirees.

Ron
 

RonG

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From 2018 MOAA:

Military retirees in Colorado scored a big victory last month when Gov. John Hickenlooper signed a law extending income-tax deductions for those under the age of 55.

The bill, which is designed to encourage veterans to stay in Colorado after leaving the military, allows retired servicemembers who aren't yet 55 to claim deductions in staggered amounts over four years.

Before this move, Colorado had been one of 10 states without any state income tax deductions for military retirees.

“The goal was to keep ... and attract veterans to Colorado,” said Shelly Kalkowski, a retired Air Force lieutenant colonel who works on the Colorado Councils and Chapters of the Military Officers Association of America. “If they're Colorado residents [who] join the military, they want to live here but said it's too expensive to come back. This gives them a little more leeway in their disposable income to come here.”
 

RonG

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Hello,

Back to some of your original questions.

You said: "Thanks Ron for the prompt reply. I am still AD with my official retirement date on 30 July 2020. I have received my final ratings decision from both DOD and VA. I was told by my Peblo that I cannot apply for CRSC until after my EAS date. Can you confirm? Also, does DFAS automatically start depositing my offset retired pay into my direct deposit? I cannot seem to get any answers from anyone at DFAS do to still being AD. "

1. One must be in a retired status to be eligible to file a CRSC application. It will be kicked back otherwise.
See this for CRSC info: A Supplement to CRSC Information <---LINK

2. I suspect your Direct Deposit arrangements will be done by the local finance support element. I did my own in 1991 as I was the senior NCO in "the finance element".

3. If problems develop:

myPay

If you live in the United States and certain U.S. Territories, you can enroll in direct deposit through myPay. If you don’t have a myPay account yet, you can use the troubleshooting instructions on our homepage to create one.


1. Go to the myPay web site, and log into your account using the “log In” box at the top left-hand side of your screen
2. Click Accept on the Terms of Use Agreement
3. On the Main Menu Page, find the Direct Deposit link
4. Enter your Routing Number, your account number, account type and financial institution
5. Save your changes and close out the Screen or use the link at the top of the page in the gray bar to return to the main menu
6. Your account will be updated in three to seven business days


If you have problems remembering your login ID or password, use the “Forgot Your Login ID?” or “Forgot or Need a Password?” link. You can also contact myPay at 888-332-7411 (option 5) to speak to a customer service representative.


Paper Form


Complete a Direct Deposit Enrollment Form (FMS 2231) and mail or fax it to:

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


Fax: 800-469-6559


Ron
 

JH75

PEB Forum Regular Member
Registered Member
Ron,
All great information. This pandemic has resulted in many of my questions and concerns to be unanswered due to closures of offices. Due to this, I am appreciative of your dedication and support. Thank you. I did not know that benefit existed in Colorado for retirees, but that certainly is good news. I have never lived there but after spending my AD time on east coast predominantly I am eager to get my family to the mountains. We've got our eyes set of Fort Collins.
As for the CRSC, would you recommend pursuing it? Ive heard testimonies from others about how long the process can take to only be denied despite having combat sustained injuries
I am still not sure what the financial profit would be as the calculations are always confusing.
I imagine that if it were approved for me, it would only pertain to my 50% PTSD rating or a portion of it.
Could you provide some insight to what that potentially could look like? Obviously it would be estimates and speculation, Im just trying to build a picture as to what it may look like.
Thanks again Ron! You have been a tremendous help.
 

RonG

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Ron,

1. As for the CRSC, would you recommend pursuing it?
2. Ive heard testimonies from others about how long the process can take to only be denied despite having combat sustained injuries
3. I am still not sure what the financial profit would be as the calculations are always confusing.
4.I imagine that if it were approved for me, it would only pertain to my 50% PTSD rating or a portion of it.
5. Could you provide some insight to what that potentially could look like? Obviously it would be estimates and speculation, Im just trying to build a picture as to what it may look like.
Hello JH75


Item one: I highly recommend pursuing it. The worst that can happen is denial. See A Supplement to CRSC Information <--LINK

Item two: Having worked with CRSC for more than 10 years, I know of hundreds of cases that were approved.

Item three and item five: You said, "Active duty years and months-10 yrs 4 months." That is 10.333 AD years
10.333 x 0.025 = 25.83% longevity multiplier
Inferred high three, 6634 x 0.2583 = 1713.56 longevity portion of retired pay
Longevity ceiling 1713.56 minus 1286.95 residual = 426.61 CRSC
For CH 61 retirees, the CRSC when combined with the residual pay cannot exceed the longevity amount. You would receive 1286.95 + 426.61 = 1713.56 from DFAS
Note: if the approved CRSC percentage converts to an amount less than 1713.56; then is used in the formula rather than the longevity--we could discuss this if it occurs. The VA compensation tables and rates are determined the CRSC percentage amount. Most disability retirees who receive CRSC are limited by the longevity amount.

Item 4: I have nothing pertinent to offer.

The computations used here are rough estimates and could be affected by the high three if 6634 is not the high three.

Ron
 

MedRet

PEB Forum Regular Member
Registered Member
my basic calculations that I hope you can confirm are this.
DOD retire pay- $6634 (base pay) X 75%= $4975/month
VA Comp w/ spouse, 3 kids under 18 and SMC-K- $110.31+$3406.04+$86.05+$86.05=$3688.05/month
DOD offset= $4975-$3688.05= $1286.95
DOD offset X Colorado state income tax=$1286.95X .0463%= $1227.36 (DOD offset amount after income taxes removed)
New DOD offset retired pay ($1227.36+ total VA disability comp ($3688.05)= $4915.41/month

I hope that it makes sense how I came to those calculations. If any of it does not seem right from your experience please let me know.

Hi, excuse my ignorance, my situation is similar to you and I was under the impression that if you take the DoD (medically retired pension) then you won't get VA disability. I see in you calculations that you combine both, can you clarify, Thank you
 

RonG

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Hi, excuse my ignorance, my situation is similar to you and I was under the impression that if you take the DoD (medically retired pension) then you won't get VA disability. I see in you calculations that you combine both, can you clarify, Thank you

Hello @MedRet


That is a common misconception and maybe perpetuated by folks during the IDES process.

You do receive retired pay in most instances, but usually it does not end up at your financial institution.

A medical retiree must agree to waive retired pay dollar for dollar in the amount of VA compensation received. In some cases the reduction leaves some residual retired pay which is retained by the retiree. The example you cited is precisely such a case. Most retirees who have relatively few years of service don't have any residual retired pay.

In a simplified summary:

One does not choose between DoD disability or VA compensation; they choose whether to accept VA compensation and waive retired pay dollar for dollar in the amount of VA comp.
I have never seen a case where it was advisable to decline VA compensation BECAUSE if the DoD is more than the VA amount, the retiree ends up with VA comp plus residual retired pay.

Ron
 
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RonG

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Unless it has changed in recent years, the block on the VA claim where one agrees to waive retired pay dollar for dollar etc., is block 26.

If you check the box...you have indicated you don't want VA comp...which is an unfortunate mistake based on my experience. Do not check box 26.

Ron
 

NJOnguard

Well-Known Member
PEB Forum Veteran
Registered Member
Hello,

Case.

my basic calculations that I hope you can confirm are this.
DOD retire pay- $6634 (base pay) X 75%= $4975/month Correct IF you used the high three which is = total of highest 36 months base pay divided by 36
VA Comp w/ spouse, 3 kids under 18 and SMC-K- $110.31+$3406.04+$86.05+$86.05=$3688.05/month
DOD offset= $4975-$3688.05= $1286.95 correct residual retired pay
DOD offset X Colorado state income tax=$1286.95X .0463%= $1227.36 (DOD offset amount after income taxes removed)
New DOD offset retired pay ($1227.36+ total VA disability comp ($3688.05)= $4915.41/month

Comments:
--Some rounding differences but I agree with your gross pay computation if you used high three.
--Nice job.

Ron
Ron,
would that same calculation work for CRDP and if possible can you calculate my retirement I have a 20 year letter,VA 100% $3500 hi 3‘s $6264 DOD 60%. I’m missing something in my calculation I’m not sure what it is And no one in finance wants to see anybody these days, please help.
 

RonG

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Ron,
would that same calculation work for CRDP and if possible can you calculate my retirement I have a 20 year letter,VA 100% $3500 hi 3‘s $6264 DOD 60%. I’m missing something in my calculation I’m not sure what it is And no one in finance wants to see anybody these days, please help.
Hello,

Items needed:

1. High three (you provided 6264...ok)
2. DoD percentage (you provided 60%...ok)
3. VA comp percentage, amount, dependents by age and category (don't need age of spouse)--you provided only 100% & 3500
4. Your active duty years or active duty equivalent. This is one of the most important parts of the computation and it is missing. Note: It is often reported inaccurately.
5 Have you met the age requirement for reserve retirement? I assume you are RC because you mentioned 20 year letter.
6. Do you qualify for another type retirement and if so...type?
7. You did not mention CRSC...if you are ineligible, i don't need the ages and categories of deps for VA comp (item 3)

--You will waive retired pay dollar for dollar in the amount of VA compensation received.
--CRDP will restore the longevity portion of retired pay.
--AD yrs or equivalent x 2.5% = longevity multiplier. High 3 x longevity multiplier = CRDP.
--The combination of residual retired pay from the waiver/offset/reduction plus CRDP cannot exceed the longeivyt portion of retired pay.

Ron
 

NJOnguard

Well-Known Member
PEB Forum Veteran
Registered Member
Hello,

Items needed:

1. High three (you provided 6264...ok)
2. DoD percentage (you provided 60%...ok)
3. VA comp percentage, amount, dependents by age and category (don't need age of spouse)--you provided only 100% & 3500
4. Your active duty years or active duty equivalent. This is one of the most important parts of the computation and it is missing. Note: It is often reported inaccurately.
5 Have you met the age requirement for reserve retirement? I assume you are RC because you mentioned 20 year letter.
6. Do you qualify for another type retirement and if so...type?
7. You did not mention CRSC...if you are ineligible, i don't need the ages and categories of deps for VA comp (item 3)

--You will waive retired pay dollar for dollar in the amount of VA compensation received.
--CRDP will restore the longevity portion of retired pay.
--AD yrs or equivalent x 2.5% = longevity multiplier. High 3 x longevity multiplier = CRDP.
--The combination of residual retired pay from the waiver/offset/reduction plus CRDP cannot exceed the longeivyt portion of retired pay.

Ron
I am a national guardsmen E8 on my third year being on active duty title 10 orders, 29 years ARNG M day total 15 years active duty time after calculations, with points 5300 points. I am fully eligible to draw my pension for retirement with age reduction years and being medically retired, no CRDC

Retirement orders reads as follows:
Retirement type and allotment code: PERM DISABILITY/12
Component: ARNGUS
Statute authorizing retirement: 1201
Other eligible laws: 1372
Disability retirement: 11 years, 10 months, 11 days
Section 1405: 15 years, 6 months, 12 days
Basic Pay: 29 years, 2 months, 9 days
Total active federal commissioned service date: None
Date initially entered military: 21 May 1991
Completed over 4 years of active service as Enl or WO: Yes

hope that’s enough information needed
 
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