Cdrp Confusion

[betrayed]

I Retired with 28 years May 31, 2004. Initially rated at 50% in the start and moved up and up and up until finally 100% retro to April o6 and last but not least 100% retro to the day after retirement June 1 2004.

In my last award letter they got the following as far as CDRP and retired pay.

total award----amount withheld----monthly entitlement----Payment start----reason for change

2239--------------1589-------------650-------------------Jul,1,04---------with hold for CRDP/ret pay

2523--------------1873-------------650-------------------Dec 1 04---------same as above

2523--------------0.0--------------2523------------------Jan 1 05---------CRDP ret pay w/hold removed

As I prev stated I was initially rated at 50% which was the thresh hold for retires with 20 years not having anything with held(as I understand it), This Crap has got me baffled.

[Jim MAC]

I Retired with 28 years May 31, 2004. Initially rated at 50% in the start and moved up and up and up until finally 100% retro to April o6 and last but not least 100% retro to the day after retirement June 1 2004.

In my last award letter they got the following as far as CDRP and retired pay.

total award----amount withheld----monthly entitlement----Payment start----reason for change

2239--------------1589-------------650-------------------Jul,1,04---------with hold for CRDP/ret pay

2523--------------1873-------------650-------------------Dec 1 04---------same as above

2523--------------0.0--------------2523------------------Jan 1 05---------CRDP ret pay w/hold removed

As I prev stated I was initially rated at 50% which was the thresh hold for retires with 20 years not having anything with held(as I understand it), This Crap has got me baffled.

We will get our money eventuly. Here is a few links to help you figure out how much you will get. The first one is the link, the 2nd one is information about the program

Jim

http://www.military.com/benefits/military-...pay-computation

http://www.military.com/features/0,15240,157205,00.html

[Ron II]

Re: "As I prev stated I was initially rated at 50% which was the thresh hold for retires with 20 years not having anything with held(as I understand it), This Crap has got me baffled." -Betrayed-

You should should review the "Phase-In" feature of CRDP. That will explain the difference between what you felt you should receive and the actual amount. Jim MAC referred a couple of sites, you can also check the DFAS site for an explanation

http://www.dfas.mil/retiredpay/concurrentr...abilitypay.html

What is CRDP?

CRDP is a phased-in restoration of the retired pay deducted from military retirees' accounts due to their receipt of Department of Veterans Affairs (DVA) compensation (reflected on Retiree Account Statements as the "VA waiver"). The phased-in restoration began January 1, 2004 with the first payments dated February 2, 2004.

Eligibility

You are eligible for CRDP if you have a DVA-rated, service-connected disability of 50 percent or higher and have twenty (20) or more qualifying years of service for a normal retirement. For members of the Reserve Components this means that you must be in receipt of a "20 Year Letter" and be at least 60 years of age. If you combined your military time and civil service time in order to enhance your civil service retirement from OPM, you are eligible for CRDP payments; however, you will have to reinstate your retired pay by coordinating with OPM.

Pay Delivery

CRDP payments are direct deposited or mailed based on your current retired pay information.

Your CRDP payments will reflect as a decrease in the VA waiver deduction on your Retiree Account Statement; however, you will continue to receive the same amount from the DVA.

Taxability

CRDP payments are taxable according to your current retired pay Federal Income Tax Withholding (FITW) tax rate and may affect the amount you wish to have deducted for State Income Tax Withholding (SITW).

Collection Actions

CRDP payments are subject to collection actions for alimony, child support, community property, garnishment and government debt.

Updates

Look for updates on this Web site as they become available. For additional information, please see the official retiree newsletter for your branch of service, as well as articles in other retiree publications.

<h1 class="article-title">Concurrent Receipt (CRDP) Pay Computation</h1> Your personal CRDP payment rate is determined by your current VA Disability Compensation waiver, minus the CRDP "Table Rate," then multiplied by the current CRDP "Phase Out" percentage. This makes it impossible to create a simple CRDP Payment Rate table that applies to everyone.

However the following four-step computation process can help you predict or verify your CRDP payment rate.

First Step - Determine your CRDP pay computation “table rate”:

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 Example: To help illustrate the process, assume the following for an eligible retiree:

Gross Retired Pay: $1,800.00 VA Disability Compensation Amount: $1,558.00 CRDP table rate (90% rating): $500.00 Second Step - Subtract the CRDP table rate from your current VA Disability Compensation amount (VA waiver).

Example:

VA waiver: $1,558.00 CRDP table rate (90% rating): - $500.00 Difference: $1,058.00

Third Step - Multiply the difference by the current restoration rate. 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% Example: We’ll use the 2006 restoration rate of 28.00%

Difference: $1,058.00 2006 Restoration rate: x 28.00% Product: $296.24 Fourth Step - Add the product to the table rate amount to find your CRDP amount.

Example:

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. 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.

Edited January 21, 2008 by Manitou Sprgs

[Jim MAC]

Betrayed

I forgot to give you this phone number 1877 327-4457 When the recording comes on asking if you want to stay on the line press 1 then it will ask you if you have recd a letter from DFAS punch1. Then wait and wait and wait then talk to a live person and due what I due ask nicely WHERES MY MONEY? They will look in the computer and give you an update.

Good Luck

Jim

[cowgirl]

Betrayed and the good news is in 2008 the cdrp is restored at the a rate of 69.76%. Sure took me alot of pencil/paper/headscratchin' to figure out what I felt i should recieve and the actual amount. So far, so good, best to ya, cg

[Ricky]

Since your award went back to 2004 at the 100 percent rate you will receive two forms of back pay. Since 1 Jan 2005 100 percent vets (schedular) are to receive both their retirement pay and VA disability pay. The retirement pay will be paid in the form of CRDP. So without going through some wild figures and put it simply at some point you will receive every penny DFAS withheld and every penny the VA took out from 1 Jan 05 to current. DFAS is still behind and the backlog grows daily. However, once VA gets the word from DFAS VA will issue their payment pretty quick. There have been cases where the issue was worked out between DFAS and VA before the rating decision was issued. Mine was done this way so when I received my rating decision taking me from 50 to 80 percent with and effective date of July 04, about two weeks later I received a fairly large payment from VA. I called them just to check and see why I received the payment. They said that DFAS and VA was trying to work out the back pay issues as they happened on new awards. Hopefully this has been done on yours as well. Congrats on a job well done.

[Berta]

GREAT INFO-

although it is "baffling" for many many vets-

I pulled out my CRSC CRDC file this AM and read some old stuff from 2007 promising retirees the checks are in the mail----

what a mess-

also I bet some CRDP CRSC are based on prior VA Awards and the retiree has to inform them of any potential changes to their %, if they start to determine retro without considering anything that has alter the SC % rating since they filed for CRSC/CRDP.

(did that make any sense at all? - it drives me nuts to try and figure it all out but 'more than likely' they are getting some of these retros wrong)