Increase In Va Rating

[cw4 retired]

I am a 20 year retired vet and receive retired pay. I was also rated by VA at 50% in 2006. Today I received a letter stating I am now at 80% based on a re-evaluation I started July 2013. So my question is: will my retired pay stay the same and my VA compensation increase? This is a very confusing document.

[USMC_HVEQ]

Your retired pay for up to the 80% will be waived now, up from your 50% that is currently waived, so your taxable retired pay will go down, but the overall should remain the same, i believe. It just changes your tax liability. Since most likely you are receiving CRDP based on your 20 yr retirement. Anything from the VA must be waived since it is non taxable. Are you receiving CRSC, must apply to your branch of service, if you are eligibile? if so you will have the option next month to choose between CRSC (Non taxable) and CRDP. You can't get both CRSC & CRDP. both of these are just restoring your retirement pay that has been waived from the VA. I took a stab at this, sorry if anything I am saying isnt 100% accurate.

reference example: VA comp for 80% is currently 1551.48 for vet alone, no dependents...vs 50% is 836.13

so most likely your retired pay will have 1551.48 waived by DFAS then you get the rest as CRDP (Taxable) + VA 80% tax free= your net

Edited December 26, 2014 by USMC_HVEQ

[toddt]

I am a 22 year retired vet. I started at 50% VA disability and my retired pay stayed the same. I am now 70% VA disability and my retired pay has stayed the same. Your retired pay should stay the same and you will be paid 80% VA disability pay which is not taxable.

[M21-1]

The Value of the CRDP Benefit:

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.

The CRDP Application Process:

Fortunately Concurrent Receipt is automatic. If you qualify you will automatically see an increase in your monthly retirement check.

Source:

http://www.military.com/benefits/military-pay/concurrent-retirement-and-disability-pay-crdp-overview.html

[RUREADY]

I been reading a little on this and if VA compensation is 50% or more

you can receive both retirement & compensation if after 2004 or something

I was just reading because I was trying to help a friend with his but I don't know

much on this not yet still reading other who know should chime in. jmho

[Berta]

It can get a little confusing

The best explanation I found is this one at Military.com:

http://www.military.com/benefits/military-pay/special-pay/comparing-crsc-and-crdp.html

And here is more:

http://www.dfas.mil/retiredmilitary/disability/payment.html

CRSC (Combat related Special Compensation) has to be applied for, but CRDP is automatic.

The CRSC application is here:

http://www.dfas.mil/retiredmilitary/disability/applyforcrsc.html

[toddt]

Let’s make a simple example of a retired E-7 with 20 years service. The base pay for an E-7, according to the 2014 pay scale, would be $4,372. At 50%, the retirement pay would be $2,186. The following chart shows how valuable this benefit is (assuming the retiree elects to waive a portion of his or her retirement pay in order to receive the VA disability pay, which is tax exempt):

• 0% disability: Base pay = $2,186
• 10% Disability: $2,055 Base Pay, $131 VA Disability Pay; $2,186 Total
• 20% Disability: $1,927 Base Pay, $259 VA Disability Pay; $2,186 Total
• 30% Disability: $1,785 Base Pay, $401 VA Disability Pay; $2,186 Total
• 40% Disability: $1,610 Base Pay, $576 VA Disability Pay; $2,186 Total
• 50% Disability: $2,186 + $822 = $3,008
• 60% Disability: $2,186 + $1,041 = $3,227
• 70% Disability: $2,186 + $1,302 = $3,488
• 80% Disability: $2,186 + $1,526 = $3,712
• 90% Disability: $2,186 + $1,714 = $3,900
• 100% Disability: $2,186 + $2,858 = $5,044