Retirement Pay And Va Disability Pay

[LILS]

Hi Gurus,

I'm hearing different answers on this one from non-retirees/non-VA people. Need help. If I am rated 100% schedular (not mental; can fully work) when I retire, how does this affect my retirement check? I've heard the word offset used when there is a VA check and a retirement check. Or do you get your full retirement check AND your VA % rating check (the money posted on the VA website)? Can someone please tell me how that works or where to find the info? I searched for it, but I keep seeing different answers or posts from years ago. As you can see by my questions, it's kind of hard to word what I want to say, to even search for the answer.

In other words, if my retirement check is $2000/mon (after taxes) and my 100% VA rating is $2200, does that mean I would receive $4200/mon? Or does some $ come out of one of those checks, due to the fact I am receiving both? Or does it all depend on specific circumstances? Does anyone even know what I'm talking about? Do I even know what I'm talking about? :D

[Testvet]

Hi Testvet,

Thanks. My percentage is not related to combat zone or training. The ratings would be strictly for medical issues., ie, sleep apnea, hysterectomy, knee surgeries, etc, etc. I read about the concurrent retirement and disability pay, but it is all still confusing to me.

from your medical problems I don't think any of them would qualify for CRSC off sets then but it will change your income from a taxable retirement benefit to a tax free compensation check that can save you thousands of dollars a year and if you get rated at 100% total then depending on which state you live in then you might qualify for tex exemptions on your home and vehicles here in South carolina I don't pay property tax on my home and less than one acre of land and I can own 2 vehicles without having to pay annual ad valorem taxes or pay tag fees they charge a one time 25 dollar fee we used to pay a couple hundred a year just for car plates now we don't pay anything and my neighbors pay about 3 000 a year in property taxes and I pay 0 so there are many advantages just to get the 100% rating even if you have to deal with the off sets is life fair no but then no one ever promised it that it would be like my mom used to say " life is like a rose garden it has thorns in it"

[LILS]

from your medical problems I don't think any of them would qualify for CRSC off sets then but it will change your income from a taxable retirement benefit to a tax free compensation check that can save you thousands of dollars a year and if you get rated at 100% total then depending on which state you live in then you might qualify for tex exemptions on your home and vehicles here in South carolina I don't pay property tax on my home and less than one acre of land and I can own 2 vehicles without having to pay annual ad valorem taxes or pay tag fees they charge a one time 25 dollar fee we used to pay a couple hundred a year just for car plates now we don't pay anything and my neighbors pay about 3 000 a year in property taxes and I pay 0 so there are many advantages just to get the 100% rating even if you have to deal with the off sets is life fair no but then no one ever promised it that it would be like my mom used to say " life is like a rose garden it has thorns in it"

Thanks for all the info. I understand more now. Who knows, we may end up in South Carolina too after we retire. My husband is from there. Little town called Johnston. We haven't decided where we'll be settling.

[Thad]

So if not combat-related, then CRSC probably doesn't apply, and CRDP would (that's what I get). Calculations are a little ugly:

"Payments are determined by DFAS and will vary depending on your retired pay, disability percentage, dependents, and more. These slides are offered strictly as a tool for retirees to make an educated decision about their benefits."

So read:

crsc and crdp

and

Slideshow on calcs

Best to you,

Thad

[Thad]

LILS,

I should have also said that the VA $ is simple: it comes, and it's taxfree.

The CRDP is more complicated because they (DFAS) start by subtracting off the VA $ from your retired pay as an offset, but then they credit most of it back (if you're 100%-SC) as CRDP. Whatever total finally comes in the retired pay is taxable.

Thad

[LILS]

LILS,

I should have also said that the VA $ is simple: it comes, and it's taxfree.

The CRDP is more complicated because they (DFAS) start by subtracting off the VA $ from your retired pay as an offset, but then they credit most of it back (if you're 100%-SC) as CRDP. Whatever total finally comes in the retired pay is taxable.

Thad

Thanks Thad. What does the restoration rate mean? I retire in 2011, so it says the rate will be 98.11%. Will it increase to 100% in 2014 for me or is that only for people that retire in 2014 and beyond? Does yours increase each year?

[Thad]

The same restoration % applies to everyone for the current year we are getting CRDP, not based on when you retired or were SC'd.

While the restoration rate is less than 100%, it just saves them (costs us) money by not giving us 100% of the offset back as CRDP.

What you get back each month is (100% of BaseTableAmt) + (Restoration% * (VA amount - BaseTableAmt)).

So each year as Restoration % grows closer to 100%, we each get closer and closer to getting all of the VA amount back as CRDP.

Also, this assumes you are not rated unemployable or 100%, since then the restoration % is automatically 100% and you would get the full VA amount back as CRDP.

My sidebar shows I'm actually only 30% SC now, so I don't (yet) qualify for CRDP. But I hope changes in the rating decision will push me to at/over 50% SC so I can start getting the CRDP.