Military Disability Retired Pay versus VA Disability Compensation

[TBONE]

Can someone explain the difference? I retired with 20 years service. I always thought that when you a receive a rating from the VA, in my case 60%, 60% of the retired pay from the military would be NON TAXABLE

[stumpy]

TBone, the 60% amount that you get from the VA is tax free. You do not get 60% of your retirement pay tax free, just what you get from the VA is tax free.

[TBONE]

Stumpy,

Thanx. I did a little more research and understand the it now.

Thanx again

T

[wallyg34]

Originally Posted by stumpy

TBone, the 60% amount that you get from the VA is tax free. You do not get 60% of your retirement pay tax free, just what you get from the VA is tax free.

Under certain circumstances that is not correct. If you choose NOT to receive disability from VA, but to continue to receive your full retirement amount from DFAS, then 60% is TAX FREE.

The 60% that you would otherwise receive from the VA.

[TinCanMan]

Walter, that doesn't even make good sense. If that were the case, why would any retiree waive retirement in favor of the VA check? Secondly, that "x" percentage you receive from the VA has nothing to do with percentage of retirement. The percentage isn't deducted from retirement, it's the amount the VA provides as compensation that does, and the two are not synonymous.

[TBONE]

Thanx to all for the comments, Now can someone explain CRDP? After the phase in is complete will I get my full retirement (taxable) AND my full VA compensation(Tax free)?

Thanx

[TBONE]

Also,

If I am rated at 60% do I qualify for CRSC?

[TBONE]

Forgot to mention I am a Gulf War Vet

[TinCanMan]

TBONE:

When CRDP is fully phased in you get all of your retirement and all of your VA compensation. You can collect CSRC if your disability is due to a combat related incident or a combat related training incident. I don't think you can collect both CRDP and CRSC concurrently but Not absolutely sure. Will check on that. Perhaps Stumpy knows?

[TBONE]

Thanx. I really appreciate the quick response AND the brevity that answers the question.

HOOAH!

[TinCanMan]

TBONE:

I checked and you cannot collect both. Here's something I found.

CRDP OR CRSC OPTION: Section 1414 of Title 10, U.S. Code, requires an annual open season be provided for retirees who potentially are eligible for both Concurrent Retirement and Disability Pay (CRDP) and Combat Related Special Compensation (CRSC). During the open season, retirees can elect to change from one type of payment to the other. Retirees can receive either CRDP or CRSC, but not both. Therefore, retirees have the right to change the type of payment they receive. There are two factors that retirees need to consider in making an election. CRDP is taxable whereas CRSC is not and the CRDP payments increase each year during the 10 year phase in period. To assist retirees who are considering changing the type of payment they receive, the Defense Finance and Accounting Service (DFAS) sends out an election form to retirees who fall into this category that includes information about each type of compensation and its current value. To be valid, DFAS must receive an election to change a retiree's entitlement no later than 31 JUL 05. Elections received after 31 JUL 05 will not be honored. Retirees are not required to make an election. If retirees do not make an election, they will continue to receive their current entitlement for 2005, even though it may not be the greater entitlement. A retiree's election will remain in effect until the next open season. If a retiree elects to change the type of payment they receive, and that change results in a greater entitlement, the election will be made retroactive to 1 JAN 05 and the retiree will receive a payment for the difference between the two entitlements no later than 60 days after DFAS receives the election. If retirees elect to change to a lesser entitlement, their election will be effective on a current basis and no adjustment will be made for amounts received since 1 JAN 05. Retirees who have questions can reach representatives at DFAS by calling 1 (800) 472-7098 or (216) 522-5955; or by fax at 1 (800)469-6559. They can also write DFAS at: Defense Finance and Accounting Service, U.S. Military Retirement Pay, P.O. Box 7130, London, KY 40742-7130. [Source: MOAA News Exchange 29 JUN 05]

OK, Check these URL's to see if you are potentially eligible for CRSC:

http://www.naus.org/CRSCInfo.htm
https://www.hrc.army.mil/site/crsc/e...ligibility.htm
http://www.hq.navy.mil/ncpb/crscb/El...ligibility.htm


Follow up:

Well TBONE, I have to thank you. I hadn't paid much attention to the eligibility for CRSC because I didn't believe I was eligible. I'm 50% with AO related DMII. However in doing the lookup for you I stumbled across the 2004 changes and it looks like I am eligible. Never can tell when helping someone else is repaid.

[TBONE]

Has anyone heard anything on the Concurrent Retirement and Disability Payments (CRDP) issues? I read the following from a Power Point presentaion

Bills Introduced –109thCongress

•H.R. 303 and S. 845 -eliminate the phase-in period
•H.R. 2368 –eliminate the phase in period and extend CRDP to veterans with disabilities rated less than 50%
•S. 558 -extend to veterans with disabilities rated less than 50%