How Will the Proposed Chapter 61 CRDP Affect You?
Jul 10 2009
This information is based on a proposal at this point. Everything is subject to change until the draft is signed into law. Based on my conversations with potentially affected military members, it helps if we start with a few ground rules to make this program easier to understand.
First, forget all you know about your Service pay and concurrent receipt AKA Concurrent Retirement and Disability Pay (CRDP). If you start with a clean slate it’s easier to comprehend. The barracks lawyers are putting out misinformation.
Next, you have to understand the definition of CRDP. This is critical. CRDP only restores Service pay based on your service time. That’s all it has ever restored. It does not restore Service disability pay. The law prohibiting two disability checks is still in force.
Third. Your Chapter 61 Service pay, for CRDP purposes, has two components. Part disability pay and part Service longevity pay; the part based on your years of service. The part based on your service time is figured like any retiree’s retired pay; 2.5% times years of service.
Fourth. Under this proposal you: 1) may already be getting what CRDP would provide you (in other words, you get nothing extra, no CRDP); or 2) may get CRDP.
Now, let’s look at some examples:
Example 1
• Member with 3 years of service when Chap 61’d.
• Service disability rating of 60%.
• VA rating of 80%.
• Service pay based on $1800 base pay per month at retirement.
• 60% Service rating provides disability retirement of $1080 ($1800 x 60%).
• 80% VA rating pays $1400 a month.
• Currently, member’s entire Service pay docked due to VA comp at a greater amount.
• Under CRDP the member will receive retired pay for years served.
• 3 years multiplied by a 2.5 percent is 7.5%.
• 7.5% times the $1800 base pay is $135 a month in retired pay for years served.
• Member will get VA comp of $1400 plus $135 Service pay (CRDP).
Example 2
• Member with 10 years of service.
• 90% Service rating.
• 90% VA rating.
• Base pay of $6500.
• $6500 base pay at 90% Service rating equals $5850.
• VA comp at 90% $1600.
• Member is receiving $1600 from VA and $4250 from Service ($5850 – $1600).
• Under CRDP there is no change—no CRDP payment since you already receive all of your Service longevity retired pay.
• 10 years of service times 2.5% equals 25% of base pay or $1625; this is the only amount CRDP restores.
• You’re receiving Service pay of $4250 so the VA comp is only docking your Service disability pay and by law the CRDP proposal doesn’t change that.
Example 3
• Member with 18 years’ service.
• Service rating 50%.
• VA rating 90%.
• Base pay $4500 a month.
• 50% Service rating times base pay equals $2250.
• VA comp at 90% is $1600.
• Member receiving $650 from Service (2250 – 1600) and $1600 from VA.
• Under CRDP you have to calculate Service longevity retired pay of 18 years times 2.5% for 45% times $4500 equals $2025. CRDP ensures the member receives this amount due to his vested service time.
• Member is owed $2025 from the Service (original $650 plus CRDP) AND $1600 from the VA.
Finally, please keep in mind, everyone with less than 90% VA rating will be phased in over time. You will see your CRDP later. See our MOAA Legislative Update for the proposed phase in schedule.
Sirs,
Thank you for your informative posting regarding CDRP. I do have a question however. Does the proposed legislation include Chapter 61 retirees with non-combat related disabilities?
Yes sir, this would include non-combat disabilities. So far the legislation is still alive in the Congress but it is far from a sure thing. We will shout from the hill tops if it passing. Follow our electronic newsletters and this blog to see if the law passes in the next month or two. Shane
I am a retired Chapter 61 person. I have a 70% USAF Disability for 9 years, 9 months as an E-5. I also have a VA disability of 80% of which I get approximatley $1461. Since I am a 70-80% service connected disabilty can I expect CRDP in Jan 2011?
MOAA has several irons in the fire for CRDP for Chap 61 folks. At this point it is too early to tell whether any will survive and in which form they may survive. Stay up to speed on the legislative pages off our MOAA home page. You are eligible for consideration in the other version of concurrent receipt, Combat Related Special Compensation, CRSC. See this AF site for more details. Also see our MOAA describing how CRSC works for Chap 61 retirees.
I was medically retired at a little over nine years of service from the Navy. Navy rated me at 90% and VA at 100%. I receive 3199 from VA disability compensation and 638 for CRSC. How does CRDP affect me, if any?
Thank you for posting this helpful information about CRDP.
Will the new legislation include immediate (before age 60) CRDP for reserve and NG with over 20 good years and Chap 61 retired? As of now, the reserve and NG must be at least 60 years old and receiving retired pay. This does not even consider reserves and NG who are Chap 61. I have not reached my 60th birthday but I have over 20 good years and I am Chap 61 retired.
Furthermore, what about all the other service members who are Chap 61 and do not have 20 good years .
I am a reservist of 26 1/2 good years. I was Chap 61 medically retired at 80% combat related. Of the 26 1/2 years, 9 years are considered federal active service for CRSC purpose. I qualify for CRSC but when the numbers are crunched, I do not receive any CRSC.
I am rated 100% with the VA. My Army retired pay is ~ $3,750 and VA is ~ $3,100. I receive ~ $650 from the Army and ~ $3,100 from the VA. As you can see, I do not receive any CRDP.
Recommendation: CRDP apply equally to ALL Chap 61 retirees; regardless of Active, Reserve, NG, ANG and regardless to length of service.
Respectfully,
James
I am 60% service connected from a 16 yr 9 mth active career in a combat arms MOS and spent 5 years on TDRL giving me a retirement date showing a 22 year career. I am 100% IU from the VA and I have been turned down for CRSC for not enough evidence that the illness was direct caused from training. I recieve $2600 from VA and none from my retirement. What do I need to do to get my retirement since I can no longewr work. My service to our country has taken my ability to earn an income. What needs to happen so that I can recieve the retirement that I was promised and worked so hard for.
Brew, the time you spent on TDRL does not count toward service longevity years. So for longevity purposes you are less than 20 years and not eligible for CRDP. There is no other option available to you except fighting Congress for a change in the CRDP laws–something that is at the top of MOAA’s priority list. 2/3rds of retired Service members with VA disability comp are in your shoes. We fight for folks like you. See http://capwiz.com/moaa/issues/bills/ for a list of current draft bills dealing with your issue.