Jump to content
VA Disability Community via Hadit.com

 Ask Your VA Claims Question  

 Read Current Posts 

  Read Disability Claims Articles 
View All Forums | Chats and Other Events | Donate | Blogs | New Users |  Search  | Rules 

  • homepage-banner-2024-2.png

  • donate-be-a-hero.png

  • 0

Retiree Crdp And Va Waivers

Rate this question


cowgirl

Question

  • HadIt.com Elder

Cowgirl question of the day

What is the formula that determines the VA waiver amount of money from retired pay? Can someone here break it out?

Thank you ~ !

Cg'up2009!

p.s. Its not the 'withheld amount'.

Link to comment
Share on other sites

  • Answers 13
  • Created
  • Last Reply

Top Posters For This Question

Recommended Posts

Corpsman.com

Concurrent Retirement and Disability Pay (CRDP) Overview

Concurrent Receipt means to receive both military retirement benefits and VA disability compensation, and up until 2004 this was forbidden by law. To receive a VA disability compensation, disabled military retirees had to waive all or part of their military pay. The following is a summary of Concurrent Receipt:

§ Concurrent Receipt Overview

§ Benefits Update

§ Eligibility

§ The Value of the CRDP Benefit

§ Computing Your CRDP Payment Rate

§ The Application Process

<H2 style="BACKGROUND: white; MARGIN: auto 0in; mso-line-height-alt: 15.0pt">Concurrent Receipt Overview</H2>Qualified disabled military retirees will now get paid both their full military retirement pay and their VA disability compensation. This recently passed law phases out (over 9 years) the VA disability offset, which means that military retirees with 20 or more years of service and a 50% (or higher) VA rated disability will no longer have their military retirement pay reduced by the amount of their VA disability compensation.

Unlike the Combat Related Special Compensation (CRSC), full concurrent receipt will be phased-in over the coming years (except as noted above). This means that if you qualify you will see your retirement pay increase by approximately ten percent each year until the phase-in is complete in 2014.

CRDP Update 1/28/2008: Those members who have been rated less than 100 percent, but rated 100 percent disabled by the VA under the unemployability code (UI), will now receive CRDP. It has not been made clear when the first payments will be sent. Contact the VA for details on your personal payment situation. 1-800-827-1000.

The Defense Accounting and Finance Service has not announced when retro-payments will begin. Military retirees may call 1-877-327-4457 for issues concerning entitlement to VA retro payment.

<H2 style="BACKGROUND: white; MARGIN: auto 0in; mso-line-height-alt: 15.0pt">Concurrent Receipt Eligibility</H2>To qualify for concurrent receipt you must:

§ Be a Military Retiree with 20 or more years of service, including:

§ Chapter 61 Medical Retirees with 20 years or more.

§ National Guard and Reserve with 20 or more good years. (Once they turn 60 and begin drawing a retirement check)

§ Temporary Early Retirement Authority (TERA) Retirees may also be eligible.

§ Have a Service Related VA disability rating of 50% or higher.

Click here for the exact wording of this new law.

<H2 style="BACKGROUND: white; MARGIN: auto 0in; mso-line-height-alt: 15.0pt">The Value of the CRDP Benefit:</H2>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. You can use the CRDP Pay Computation to figure out your personal payment rate.

When fully phased in, CRDP will fully restore your military retirement pay and VA Disability Compensation payments. For example a single retiree with a VA Rated service-connected disability could receive their full retirement pay in addition to over $2,400 a month.

It is also important to note that the amount you receive cannot exceed the sum of your actual military retirement pay and VA Disability Compensation added together.

<H2 style="BACKGROUND: white; MARGIN: auto 0in; mso-line-height-alt: 15.0pt">The CRDP Application Process:</H2>Fortunately Concurrent Receipt is automatic. If you qualify you will automatically see an increase in your monthly retirement check.

—————

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.

NOTE: The following is an example to help illustrate how the computation works. The VA compensation amounts do not necessarily reflect the current VA payment rates.

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 single retiree with no children and a 90% VA Disability Rating:

Gross Retired Pay:

$1,800.00

VA Disability Compensation Amount:

$1,517.00

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:

$1,517.00

CRDP table rate (90% rating):

- $500.00

Difference:

$1,017.00

Third Step - Multiply the difference by the current restoration rate.

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 2008 restoration rate of 69.76%

Difference:

$1,017.00

2008 Restoration rate:

x 69.76%

Product:

$709.46

Fourth Step - Add the product to the table rate amount to find your CRDP amount.

Example:

Product:

$709.46

CRDP table rate (90% rating):

+ $500.00

2008 CRDP amount:

$1209.46

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 (Including those rated 100% Individual Unemployability (IU)) are entitled to an immediate 100% restoration. 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 by sharon
Link to comment
Share on other sites

Cowgirl question of the day

What is the formula that determines the VA waiver amount of money from retired pay? Can someone here break it out?

Thank you ~ !

Cg'up2009!

p.s. Its not the 'withheld amount'.

Cowgirl

Call this number 1-877-327-4457 when the answering machine answers press 1 twice. You will get a live operator. Be nice and saY whers my MONEY. They will send a message out to check your money and DFAS will send you what they owe you in about 6 weeks. I got 3500 after taxes last time.

Good Luck

jim

Link to comment
Share on other sites

  • HadIt.com Elder

Thanks Sharon, thats clear and I hope it helps others too. Just on the rating decison letter the 'withheld' amount doesnt 'add up' to the 'waiver' amount. On the DFAS ras, the term 'waiver' shows the 'restoration' (va/crdp) amount 'withheld' from pay.

To clarify VA compensation pay with retired pay takes a bit, sure deserves a delivered clear calcualaton rather than setting up a spreadsheet myself to QC.

Thanks JIM, I wish for dfas pay, but am not sure because VA 'amount paid' 'effective date' and 'reason for change' seem to show CRDP being paid from the VA deposit I got. On the reason for change column, there is a start and stop date for crdp withholding, explained in the body of the letter as, 'FOR NOW, we must withhold part of your compensation for the period that your combined service connected eval is less than 100 percent to prevent a double payment and we will work with mil retired pay to ensure you get correct benefits payment.

So, ok, I am double checking, called that dfas number, talked to clerk, 'yes ma'am, no ma'am, you arent due any money, how do I know, well..., it says so. Okay, you can get a history of payments made to you, I'll send you the form, you fill in name, rank, serial #, telephone number, ssan and vacum cleaner bag size, and send it back to us, we'll check it over, talk with the VA and then print out your history and sent it to you in about 6 weeks.

It's always nice to get whats due, just figgerin it out gives a cowgirl a thirst ~ !

Again thanks,

Cg'up2009!

Edited by cowgirl
Link to comment
Share on other sites

Hmmm...maybe someone can help me out then. I went from 40% to 50% in Nov 2008 dated back to Nov 2007. I received retro pay from VA very quickly. I called DFAS (the 1-800 mentioned in this post) yesterday and they told me that they show me getting CRDP since December of 08, but has received nothing from VA telling them that I have a year of retro coming. Before all this, I sent in IRIS inquires to ask them what was up to both VA and DFAS. Basically they both came back saying the other organization needs to do what they need to do. I am confused about the whole thing. I can understand if I am just waiting in line to get it, but that is not what they are telling me. They are telling me that VA needs INFO from DFAS and DFAS is saying they need INFO from VA. ??? Can I just send DFAS a copy of my award letter from VA and have them figure out what the back pay will be?

Link to comment
Share on other sites

  • HadIt.com Elder

Joey, I hear ya. Sending them a rating copy may help, havent done that yet myself. Sure hope the numbers work out for you. Did the formula posted here help you figure out what is due you? offset as a 'waiver'? If you havent recieved the correct retro since the decision in November, thats a long time, yikes. Let us know how it goes ~ .

A few years ago, I recieved my rating over 50% and my initial crdp. That rating letter had VA,retired pay & crdp details.

The are 13 columns showing:

entitlement month, gross retired pay, Va waiver, retired net pay, crdp or crsc, crdp %, crdp paid,crdp award, va award, va paid, va withheld, total dual payment, due from retirement pay, due from VA. Then it shows a Total Amount due from VA. (I have since seen the letter crdp format on the va website in a publication).

On rating notification letters since, only the standard format: the Total VA benefit, Amount Withheld Amount Paid Effective date and Reason. So, I have to add the amount paid between the effective date(s) to get the total deposit. The total deposit amount does NOT show on the letter, only in the bank. Nor are there detailed VA, Crdp award or retired pay details. (put va and dfas in different banks myself).

I keep reworking the numbers for correctness. Maybe its seamless to different agencies va, crdp and dfas, just foggy to me. I want details and am requesting an 'accounting' from each. We each deserve va, crdp, pay details.

Best to ya,

Cowgirl,up2009!

p.s. (cant wait till they call my retired pay an 'award'!)

Hmmm...maybe someone can help me out then. I went from 40% to 50% in Nov 2008 dated back to Nov 2007. I received retro pay from VA very quickly. I called DFAS (the 1-800 mentioned in this post) yesterday and they told me that they show me getting CRDP since December of 08, but has received nothing from VA telling them that I have a year of retro coming. Before all this, I sent in IRIS inquires to ask them what was up to both VA and DFAS. Basically they both came back saying the other organization needs to do what they need to do. I am confused about the whole thing. I can understand if I am just waiting in line to get it, but that is not what they are telling me. They are telling me that VA needs INFO from DFAS and DFAS is saying they need INFO from VA. ??? Can I just send DFAS a copy of my award letter from VA and have them figure out what the back pay will be?
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Guidelines and Terms of Use