Crdp Question

[COOL BREEZE]

I am not sure how many folks here are entitled to this. According to what the statement is below- If my new VA disability pay is more than my military pension, then I won't get much retro. They have stated paying me for 70%, which is more than my retirement pay. I thought once you were over 50 % you get most of it. Any thoughts.

"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." What does this mean?

[boomer2]

Cool Breeze

Check the link below. I don't know if you will get the answer you are looking for but, it may help you understand CRDP a little better. I don't know if you qualify or not but you may want to check CRSC as well. I think CRDP is taxable and CRSC is not. Hopefully, our illustrious Congress will pass HR 333 and we won't have to be bothered with kind of BS any longer.

http://www.index.va.gov/search/va/va_search.jsp?SQ=&TT=1&QT=crdp

[Berta]

We have some other links here at hadit for CRDP and CRSC and this is explained at the main web site of every service branch, at Military.com and at DFAS web site.

[jvretiredvet]

Well, what you wrote can be both true and untrue, depending ...

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. If your VA disability percentage is less than 50%, it is true because of the present Concurrent Receipt prohibitions.

However, once your VA percentage is above 50% (which apparently you are), you enter that magic realm of the phase-in of the return of your MilRetPay while receiving VA comp, until you are receiving 100% of both. Others have provided links about CRDP, so I won't dare to step into that morass of computations.

I believe a hint as to what your retroactive pay might be can be found on your notification letter, under WHAT IS YOUR ENTITLEMENT AMOUNT AND PAYMENT START DATE?. Look in the "Amount Withheld " column - this will show what, if any, CRDP offset was computed between the VA and DFAS. If there is something in the withheld column, that amount reduces any retroactive compensation. So, any retroactive pay would be the net "Monthly Entitlement Amount" less any previously received VA comp.

All is not totally lost though. Because you, a retired military member, just received a retroactive VA disability determination, the monthly amount in "Amount Withheld" magically changes (recharacterizes) that same amount of previously received MilRetPay into disability pay. Based on that recharacterization, you can file amended US Federal and generally state income tax returns for the affected years and receive additional refunds (plus interest!). And, under some (fairly) recent changes in income tax law, you may be able to amend as far back as 5 years instead of the standard 3 year statute of limitations. Note: this is specifically mentioned in IRS Pub 17 and the instructions for Form 1040-X, Amended Tax Returns. While the new SOL is valid for Federal returns, it may not be valid for state returns.

If you need more info about this, I'm sure you'll ask.

I am not sure how many folks here are entitled to this. According to what the statement is below- If my new VA disability pay is more than my military pension, then I won't get much retro. They have stated paying me for 70%, which is more than my retirement pay. I thought once you were over 50 % you get most of it. Any thoughts.

"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." What does this mean?

[COOL BREEZE]

It says- total Va benefit amount with held amount paid effective date reason for change-Compensation Rating increased to 70 %, retired pay adjustment

1,429.oo 464.00 965.00 Feb 1,2010

1,479,00 0.00 1,479.00 December 1, 2011 Retired Pay adjustment ends

Now I am a little concerned. When I went to 50 % I received over 4,000 in retro. The Va says they are having the military audit my military pay. I was expecting a retro of at least 464.00 from Feb 1,2010.under the crdp they were only reducing my military pay 16.00 per month. And last time I received this pay within 10 days of the decision.

Also the letter states they are contacting the military pay center of this award. I am under the crdp so are they doing something different? perhaps I am not going to get a retro for the difference from 50-70%.

[jvretiredvet]

I may have presumed too much in the beginning ...

Are you referring to retroactive compensation (run by the VA in coordination with DFAS), or the RETRO Program (or whatever is left of it), run by DFAS?

It says- total Va benefit amount with held amount paid effective date reason for change-Compensation Rating increased to 70 %, retired pay adjustment

1,429.oo 464.00 965.00 Feb 1,2010

1,479,00 0.00 1,479.00 December 1, 2011 Retired Pay adjustment ends

Now I am a little concerned. When I went to 50 % I received over 4,000 in retro. The Va says they are having the military audit my military pay. I was expecting a retro of at least 464.00 from Feb 1,2010.under the crdp they were only reducing my military pay 16.00 per month. And last time I received this pay within 10 days of the decision.

Also the letter states they are contacting the military pay center of this award. I am under the crdp so are they doing something different? perhaps I am not going to get a retro for the difference from 50-70%.

[COOL BREEZE]

Supposedly once you are at 50 % or more, you are to get 98% of your military pay and your full VA disability pay. Not sure whats going on in my situation as I surely haven't received the retro from 50-70 %. All I have received was the new pay from 50 -to 70 % with no retro back to FEB 2010.

Edited December 5, 2011 by COOL BREEZE