CRDP and Retirement Pay

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RetUSAFwife	CRDP and Retirement Pay		Lead	[-]
Posts: 1 07/02/09 21:44:22	Can someone please help me with understanding my husbands recent VA determination? He is rated 60%. CRDP amount is $1174. Retirement gross is $1890. Is it correct that he will soon be getting both amounts each month?? We just received the info. in the mail and it says the effective date is May 1st. Should we expect to see the additional money beginning Aug 1st? I'm just trying to figure out what to expect because I've read alot of stuff and none of it seems too clear. I don't want to look forward to something and then be disappointed.Thanks for any help.
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brianwl		#1	[url]	[-]
Posts: 10059 07/02/09 21:50:23	RetUSAFwife, Welcome to VBN. We have an entire forum dedicated to the discussion of CRDP. It is near the bottom of the home page. Now, to answer your question. Your husband's retirement will lose $1 for every $1 received from the VA. This is where the CRDP comes in. It pays back those lost dollars. He will receive 2 checks, one from DFAS for his retirement which includes CRDP or CRSC and one from the VA. However, since he is rated only at 60% he will not get it all back until 2014. Are his disabilities the result of combat, combat training or hazardous duty? If so, he can apply for CRSC which does not have a phase in period like CRDP does. It is also tax free. We have a forum dedicated to CRSC also. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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SteamJockey		#2	[url]	[-]
Posts: 4945 07/03/09 01:35:57	He is rated 60%. CRDP amount is $1174. Retirement gross is $1890. Is it correct that he will soon be getting both amounts each month?? Hmmmnn... Something odd here. The $1174 is co-incidentally the rate for a veteran 60% disabled with spouse and 2 children. How much did the VA tell you his disability compensation would be? Who told you his CRDP would be $1174? Regards; SteamJockey, resident curmudgeon
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Crawdawg101		#3	[url]	[-]
Posts: 42 07/03/09 04:05:22	$1174.00 is not the CRDP, amount it is the amount the VA would be paying in the year 2014. Using my handy CRDP excel calculator your CRDP amount should be $1,015.39. I think what you got in the mail was a standard letter telling him how much money he would recieve from the VA. The CRDP amount will appear in the next couple of months on his RAS.
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RetUSAFwife		#4	[url]	[-]
Posts: 2 07/03/09 05:30:39	Thank you for the replies. We pulled up his most recent RAS and there is indeed a message that says : Based on information received from the VA, your CRDP amount is $1,015.39. And yes...he is married with 2 children. So.......bottom line with his Gross retirement being $1890 and it now says VA waiver 156.61, for now, what would be the total amount he will be receiving monthly and should we expect this change to begin with his August retirement pay??? Thank you for your patience as I try to understand all of this information.
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brianwl		#5	[url]	[-]
Posts: 10068 07/03/09 11:46:28	It would work like this. Retirement: $1890 taxable Minus VA pay $1174 Remaining Retirement: $716 taxable Plus CRDP: $1015.39 taxable Total Taxable: $1731.39 1 August Plus VA in a separate check: $1174 tax free Combined total: $2905.39 1 August Now, if all his disabilities are the result of combat, combat training or hazardous duty and he applied for CRSC it would look like this. Retirement: $1890 taxable Minus VA pay $1174 Remaining Retirement: $716 taxable Plus CRSC: $1174 tax free Total Taxable: $716 Plus tax free retirement: $1174 Combined retirement: $1890 (taxable and tax free) Plus VA in a separate check: $1174 tax free Combined total: $3064 but would not be on 1 Aug because CRSC takes time to be processed, but he'd draw CRDP until the CRSC was approved and paid. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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SteamJockey		#6	[url]	[-]
Posts: 4947 07/03/09 14:44:55	FWIW, every year between now and 2014 you will be receiving a little bit more as the waived amount ($156.61) decreases and CRDP increased based on the Restoration Rate for that year. It won't be much because the waived amount isn't much but if you want to understand how to calculate exactly how much it is, the following will help you understand: In order to calculate how much of your waived retainer will be restored in any particular year, you need to know 4 things. 1. Amount of your retirement check before deductions. 2. Amount of your VA Compensation 3. The 'Table'Rates 4. The Restoration Rate The table rate is the amount of waived retirement benefit which was restored in 2004, the first year of CRDP. The Restoration Amount is the percentage of restoration in any year beyond the first year. Here are the Table Rates: IU = $750 100% = $750 90% = $500 80% = $350 70% = $250 60% = $125 50% = $100 Here are the Restoration Rates: 2005 = 10% 2006 = 28% 2007 = 49.60% 2008 = 69.76% 2009 = 84.88% 2010 = 93.95% 2011 = 98.18% 2012 = 99.64% 2013 = 99.96% 2014 = 100% You say your:: Gross Retired Pay = $1890 VA Compensation = $1174 .AND. Table Rate for 60% = $125 Restoration Rate for 2009 = 84.88% OK, Now we know all the necessary information so lets get to the calculations: First: Subtract the the amount in the Rate Table from the VA compensation $1174 VA Compensation $0125 Rate Table for 60% -------- $1049 Difference Second: Multiply the Difference by Restoration Rate for 2009 $1049 Difference x.8488 Restoration Rate for 2009 ------- $890.39 Product Third: Add the Product to the amount in the Table Rate for 60% $890.39 Product $125 Table Rate ---------- $1015.39 CRDP for 2009 So for 2009 you should receive: $1174 from VA as disability $1015.39 from DFAS as CRDP and $716 from DFAS as unwaived retirement. Regards; SteamJockey, resident curmudgeon
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robbin	Your CRDP amount is	#7	[url]	[-]
Posts: 1 07/11/09 13:04:48	Reading all the replies here on this great site, but it can get a bit confusing ... I'm a newly retired, Army 1 June - just recieved my first "normal" retirement payment this first week of July 2009 - can certainly wait until Monday to call DFAS for my questions, but just thought someone here can clarify - havent recieved my VA letter yet or any official determination of percentages, I just looked at my RAS via myPay this morning as I'm drinking my first cup of coffee and see this "VA Waiver $126.40 and Message Section comment, "based on information received from VA, your CRDP amount is $809.60. So - what's the deal here folks? I'll get my normal 20 year retirement net pay amount and some amount of CRDP pay as well - two separate checks from DFAS and / or VA?
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brianwl		#8	[url]	[-]
Posts: 10202 07/11/09 13:18:12	robbin wrote: Reading all the replies here on this great site, but it can get a bit confusing ... I'm a newly retired, Army 1 June - just recieved my first "normal" retirement payment this first week of July 2009 - can certainly wait until Monday to call DFAS for my questions, but just thought someone here can clarify - havent recieved my VA letter yet or any official determination of percentages, I just looked at my RAS via myPay this morning as I'm drinking my first cup of coffee and see this "VA Waiver $126.40 and Message Section comment, "based on information received from VA, your CRDP amount is $809.60. So - what's the deal here folks? I'll get my normal 20 year retirement net pay amount and some amount of CRDP pay as well - two separate checks from DFAS and / or VA? Welcome to VBN. Here's how it works: Retirement pay is X VA pay is Y CRDP is Z VA Waiver amount is Y minus X which the CRDP does not cover at this time. CRDP pays back X but is limited to the phase in period. In 2014 you'll receive all of X and CRDP will go away. In your case Y is $126.40 greater than X. That is why you see the "VA Waiver" amount of $126.40. CRDP and Retirement come from DFAS and will pay in one check. VA pays from the VA in a separate check. When you know your VA rating and tell us your retirement amount(pay grade helps) plus how many dependents you have (wife, kids, etc) we'll be able to more accurately answer your question. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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robbin		#9	[url]	[-]
Posts: 2 07/11/09 15:46:32	Thanks for the reply - maybe I simply don't have all the variables for the equation. i.e. actual disability rating - I'll give the VA and DFAS calls Monday, I'm sure (and hope) there's a letter in the mail somewhere or forthecoming. I do have the following data if you'd be kind enough to look at, maybe you can extract everything - I was playing with the calculator and made some guesstimations as well. Army CW3 retired under CSB - REDUX Married with four kids "New" RAS Entry Lines as of last night - Gross Pay - 1933.00 VA Waiver - 126.40 SBP Costs - 8.21 Taxable Income - 1282.76 SITW - 50.00 DENTAL - 102.55 FSPA - 515.63 NET PAY 1130.21 CRDP Amount is 809.60 I guess in the end, just wondering if I should be anticipating getting the 1130.21 Net Pay plus some form of VA payment as well or one is reduced for the other, etc. Great forum --- oh, let me add - I know that the fact that I chose CSB may draw a few comments - I needed the 30K tax free during one tour in Iraq to pay off the same former spouse who's getting that FSPA I've listed now ... love and marriage! Last Edited By: robbin 07/11/09 16:42:33. Edited 1 time.
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brianwl		#10	[url]	[-]
Posts: 10207 07/11/09 17:45:09	robbin wrote: Thanks for the reply - maybe I simply don't have all the variables for the equation. i.e. actual disability rating - I'll give the VA and DFAS calls Monday, I'm sure (and hope) there's a letter in the mail somewhere or forthecoming. I do have the following data if you'd be kind enough to look at, maybe you can extract everything - I was playing with the calculator and made some guesstimations as well. Army CW3 retired under CSB - REDUX Married with four kids "New" RAS Entry Lines as of last night - Gross Pay - 1933.00 VA Waiver - 126.40 SBP Costs - 8.21 Taxable Income - 1282.76 SITW - 50.00 DENTAL - 102.55 FSPA - 515.63 NET PAY 1130.21 CRDP Amount is 809.60 I guess in the end, just wondering if I should be anticipating getting the 1130.21 Net Pay plus some form of VA payment as well or one is reduced for the other, etc. Great forum --- oh, let me add - I know that the fact that I chose CSB may draw a few comments - I needed the 30K tax free during one tour in Iraq to pay off the same former spouse who's getting that FSPA I've listed now ... love and marriage! I'm not following how you got the 1130.21? Does that include the 809.60 CRDP? Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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robbin		#11	[url]	[-]
Posts: 3 07/11/09 19:18:24	PAY ITEM DESCRIPTION INCLUDES THE FOLLOWING GROSS 1933.00 VA WAIVER -126.40 SBP COSTS -08.21 SITW -50.00 FSPA -515.63 DENTAL -102.55 NET PAY 1130.21 IN THE RAS MESSAGE SECTION IT READS".. YOUR CRDP AMOUNT IS $809.60"
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brianwl		#12	[url]	[-]
Posts: 10212 07/11/09 19:31:52	Ok, now I see how they've done it. Here's my break down: GROSS 1933.00 (retirement pay) VA WAIVER -126.40 (amount of VA pay that exceeds CRDP) SBP COSTS -08.21 SITW -50.00 FSPA -515.63 DENTAL -102.55 NET PAY 1130.21 (1933.00 minus 809.60 (VA) minus 126.40 (VA) minus 8.21 minus 50.00 minus 515.63 minus 102.55 plus 809.60 (CRDP)) Then you get the VA pay which will be 809.60 + 126.40 = 936.00 from the VA. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown) Last Edited By: brianwl 07/11/09 19:41:44. Edited 1 time.
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robbin	Thanks	#13	[url]	[-]
Posts: 4 07/11/09 19:38:42	Brian - thanks man - appreciate your input here - wasn't aware there would be a VA payment (maybe $936) and Retirement Pay (maybe $1130) payment ... news to me. Guess once I recieve the VA rating it will be clear how they rated my dents and dings. Amazing how uneducated some of us are when it comes to retirement related policies and procedures - I've read an awful lot today and contemplating which organizations to join to represent Veterans interests. What are your thoughts on that?
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Sidekick	Retirement discontinued from DFAS, BUT,	#14	[url]	[-]
Posts: 374 07/27/09 20:49:12	I am retired, over 20 ( 43 years active and reserve) and was drawing retirement. In June 2003 I was awarded V.A. Comp which made a deduction from retired pay. I was 40% at the time. In February 2009 I was reevalued and awarded 100% and IU. Here is my quandry---I received retro pay from V.A and a letter stating that because I was CRSC I would get retro pay for that. I did receive both but have a question. Now that I am not getting retirement pay--my V.A. was more than retired pay--will I now be getting my VA comp and a payment for CRDP? I remember someplace that when they "negotiated" the ten year phase-in that those at 100% would receive paymnets in the immediate future? Thanks in advance. This board and the people that take their time to help us all along are sincerely appreciated.True brother vets.
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brianwl		#15	[url]	[-]
Posts: 10397 07/27/09 21:06:37	Sidekick, There are 2 forms of "concurrent receipt", CRSC and CRDP, both of which come from DFAS. CRSC is for those that have combat, combat training, or hazardous duty related disabilities. CRSC is tax free. CRDP is common concurrent receipt and is taxable. It is also automatic. CRSC must be applied for through your branch of service's CRSC office. In the CRSC forum here on VBN there are links posted to the top of the forum for each service's website. You are afforded the opportunity to choose between CRDP and CRSC once per year in Dec/Jan. You are correct, CRDP had a phase in period, but since you are 100% it does not affect you. You should be receiving one or the other. If you're not you should contact DFAS for an explanation. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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Lonna	concurrent receipt for under 20 years	#16	[url]	[-]
Posts: 1 08/03/09 12:33:51	Hello, My husband is a 100% disabled veteran and currently receives only VA Disability compensation because his military disability pay is totally offset. We recently saw an article of May 2009 which stated that President Obama wanted Congress to approve concurrent receipt also for veterans who didn't serve a full 20 years. My husband was just short of the 20 years when he was forced to retire on disability so we are very interested in any news about this new possibility. Has there been any news about this new rule to include disabled veterans short of 20 years served?
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brianwl		#17	[url]	[-]
Posts: 10489 08/03/09 12:43:12	Lonna, Welcome to VBN. As it stands today, the House version of the 2010 NDAA includes an amendment for concurrent receipt for under 20 year retirees but the Senate version does not. Now the House and Senate have to have a conference to decide on what the final bill will contain. The best thing you can do is contact your Representative and both of your Senators and tell them you want concurrent receipt included in the final 2010 NDAA. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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kdenney66		#18	[url]	[-]
Posts: 1 08/29/09 10:22:05	Hey, my name is Kent and I have been reading your calculations and trying to figure out my stuff as well. So basically, you add the CRDP amount to the VA Waiver amount and that should be what you get from the VA???? FYI - All of your information is so helpful. Thanks for taking the time to post. Kent Denney, MSgt, USAF (Ret).
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brianwl		#19	[url]	[-]
Posts: 10869 08/29/09 23:33:06	Kent, Welcome to VBN. VA pays your disability compensation, only. If you are retired with more than 20 years and your VA rating is more than 50% you will receive what is called CRDP or otherwise known as Concurrent Receipt of military retirement. Basically, you lose $1 of your retirement for every $1 you receive from the VA. CRDP pays back those dollars lost. Now, if your VA rating is less than 100% you will only receive a portion of that money back until 2014, at which time the phase in period will end. If you are rated by the VA at less then 50%, you're screwed and Congress has not seen fit to pay you what you are owed. If your disabilities are combat, combat training, or hazardous duty related, you can apply for CRSC (see the CRSC forums here on VBN). CRSC is tax free and is often a better deal for the Vet because of that factor. Also there is no phase in period for CRSC and it does not matter what your VA rating is with regard to the 50% factor in the CRDP plan. You can only get CRDP or CRSC, not both. CRDP is taxable income. You do not have to apply for CRDP. As for calculating CRDP, go to the top of this forum and click on the links that will take you to a web site that will walk you through the calculations. Brian E-6 USAF Ch 61 Ret 80% IU/P&T SC SSDI "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)
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kdenney66		#20	[url]	[-]
Posts: 2 08/30/09 13:14:45	Thanks Brian - I retired at 23 yrs, 1 mo with 60% disability. I have used the formulas listed but the CRDP listed on my retirement statement isn't the same figure as what I come up...maybe you can make something of it??? I copied a formula and input my figures (BOLDED). Thanks again for your help. Kent. Table Rates: IU = $750 100% = $750 90% = $500 80% = $350 70% = $250 60% = $125 50% = $100 Restoration Rates: 2005 = 10% 2006 = 28% 2007 = 49.60% 2008 = 69.76% 2009 = 84.88% 2010 = 93.95% 2011 = 98.18% 2012 = 99.64% 2013 = 99.96% 2014 = 100% My Information:: Gross Retired Pay = $2179 VA Compensation = $1129 .AND. Table Rate for 60% = $125 Restoration Rate for 2009 = 84.88% OK, Now we know all the necessary information so lets get to the calculations: First: Subtract the the amount in the Rate Table from the VA compensation $1129 VA Compensation $0125 Rate Table for 60% -------- $1004 Difference Second: Multiply the Difference by Restoration Rate for 2009 $1004 Difference x.8488 Restoration Rate for 2009 ------- $852.20 Product Third: Add the Product to the amount in the Table Rate for 60% $852.20 Product $125.00 Table Rate ---------- $977.20 CRDP for 2009 (My statement for August says my CRDP amount is $1044.25 ???????) So for 2009 you should receive: $??????? from VA as disability $??????? from DFAS as CRDP and $??????? from DFAS as unwaived retirement.
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