Dependent Change To Crdp And Va Comp

[cowgirl]

When VA adds my 3 dependents to increased rating, how does VA compensation and CRDP work? I believe that once added, I should get a small amount of retroactive pay. Then my monthly VA rate increases (if this year) from 901 to 1087, expect my CRDP will be recalculated using the %rate in effect. Just wondering if my brain is on board for this one. Thanks for your thoughts,cg

[Ron II]

Hello,

Pay computation

CRDP amounts will automatically increase or decrease based on the percentage of disability reported to the Defense Finance and Accounting Service (DFAS) by the DVA.

Please note that your monthly CRDP amount cannot exceed the lesser of your monthly gross retired pay or VA waiver amount. If you are a disability retiree whose retired pay is calculated using a percentage of disability rather than your years of service, your CRDP cannot exceed the amount your gross retired pay would currently be had it been calculated at retirement using your years of service.

CRDP pay computation begins with the "table rates":

If rated unemployable $750.00

If rated at 100% $750.00 If rated at 90% $500.00 If rated at 80% $350.00 If rated at 70% $250.00

If rated at 60% $125.00

If rated at 50% $100.00 To help illustrate the process, let's assume the following for an eligible retiree:

Gross pay: $1,800.00 VA waiver: $1,558.00 CRDP table rate (90% rating): $500.00

To compute CRDP, subtract the CRDP table rate from the VA waiver:

VA waiver: $1,558.00

CRDP table rate (90% rating): - $500.00 Difference: $1,058.00

Now, multiply the difference by the applicable restoration rate (we'll use the 2006 restoration rate of 28.00% for this example):

2005 10.00%

2006 28.00%

2007 49.60%

2008 69.76% 2009 84.88% 2010 93.95% 2011 98.18%

2012 99.64%

2013 99.96% 2014 100.00%

Difference: $1,058.00 2006 Restoration rate: x 28.00% Product: $296.24 Add the product to the table rate amount to arrive at the 2006 CRDP amount:

Product: $296.24

CRDP table rate (90% rating): + $500.00 2006 CRDP amount: $796.24

These amounts will increase each year until January of 2014 when you will receive your full retired pay entitlement and your DVA disability compensation with no reduction. Unlike Retired Pay Cost-Of-Living Allowances (COLAs), CRDP increases will be effective on January 1st of each year, payable on the first business day of February. Additionally, since retired gross pay and DVA compensation (and, consequently, VA waiver) amounts increase each year with COLAs, you will not be able to accurately extrapolate CRDP amounts for future years.

Retirees who have a 100% DVA rating not due to Individual Unemployability (IU) are entitled to an immediate 100% restoration. Retirees who have a 100% DVA rating due to IU will be entitled to an immediate 100% restoration effective October 1, 2009.

[cowgirl]

Ok. already get CRDP here. VA didnt add dependents on, so I quickly submitted their paperwork. Just was wondering if the overall VA compensation amount increased by additional sum for dependents; Will I get retro pay to the day of the award date for dependents? and then my VA/CRDP amount would "adjust" monthly afterwards?thanks.cg

[Ron II]

Hi,

5. Are CRDP Payments Retroactive?

Answer: Yes. But only if your DVA Disability Rating increases, and then it will only be retroactive to the date of the revised VA decision.

6. When will the new payments begin?

Answer:You will begin receiving your concurrent receipt soon after you are determined to be eligible.

<a name="q6">7. How much will I get paid?

Answer: If you qualify for concurrent receipt you can expect to see a flat rate increase based on your VA disability rating and number of dependents. The following are the rough estimated rates that apply apply for 2007 based on the W/O dependents rate:

$2471 for 100% VA disability;

$987 for 90% VA disability;

$860 for 80% VA disability;

$689 for 70% VA disability;

$496 for 60% VA disability;

$403 for 50% VA disability.

With regard to retroactive increases for the number of dependents a veteran has--I'm really not sure. I read in one place that the claim for increase must be made within 30 days of the "event" unless unusual circumstances exist. Here is some information from the VA website:

Inquiry Can I get back compensation payments? FAQ Generally, VA can only pay benefits based on the date of claim. This applies in the case of an original claim, a claim for an increased evaluation, or a claim to add a new disability.

If VA finds a clear error was made in an earlier decision, you may receive additional back pay based on that prior claim.

Long ago when I worked in Army finance, we computed retroactive payments to the date of event provided the soldier's commander provided a 'VOCO" (verbal order of the commander) statement on the authorizing document.

Edited October 23, 2007 by Manitou Sprgs