Service Officer Training Concurrent Retirement & Disability Payments(CRDP) / Combat Related Special Compensation(CRSC) David Jungquist Training Officer David.Jungquist@tn.gov VA VSO Dedicated Phone Support: 855-225-0709

Two Forms of Concurrent Receipt A Decision Matrix CRSC Benefit Concurrent Retirement Disability Pay (CRDP) Full Concurrent Receipt Yes No – 10 yr phase in (except 100% ratings) VA Rating Starts At 10% 50% Federal Tax Tax Free Taxed File Claims Must Apply Automatic Retroactive Pay Qualified Injury Combat Linked Service Connected Divisible with Spouse Nob Available to Chapter 61 Medical and TDRL retirees with less than 20 years of service No Available to TERA retirees Notes A retiree may switch between programs during an annual “Open Season” between December and January Except as garnishment for alimony or child support and debt owed to the U.S.

Concurrent Retirement And Disability Payments (CRDP) Provides for a 10 year phase out of the offset to military retired pay due to receipt of VA disability compensation. Rates increased by approximately 10% a year and totally phased out in 2014 Must be retiree based on 20 years service and elect compensation. Includes Guard and Reservists at age 60

Includes CH61 retirees with 20 years service. Must have disability of 50% or more as rated by VA No application necessary, automatic data exchange. Benefits under this program are taxable. Program began 1-1-04 Veterans rated 100% receive full retired pay 1-1-05

Initial & Additional Rates Additional Rates by Year Initial Rates: Year 2004 2005: 10% 2006: 28% 2007: 49.60% 2008: 69.76% 2009: 84.88% 2010: 93.95% 2011: 98.18% 2012: 99.64% 2013: 99.96% 2014: 100.00% 100% 750 90% 500 80% 350 70% 250 60% 125 50% 100

How does CRDP Work? Example: Vet rated at 50% with no dependents $770 -$100 (initial calendar year 04 rate) = $670 x 84.88% (calendar year 09) = $568.70 + 100 = $668.70 Total CRDP VA Comp @ 50% - CRDP Amount = Amount of retired pay withheld: $770.00 – $668.70 = $101.30

Benefits not payable until after 10-01-08 Retro will be paid to 01-01-05 Payment due from DFAS not VA Toll Free DFAS #: 1-800-321-1080 Handout #1 (Double click to open)

Combat-Related Special Compensation (CRSC) What is CRSC? Congressionally mandated benefits program recognizing the sacrifice of eligible military Retirees One of two concurrent receipt programs; The other is CRDP Replaces VA-disability compensation subtracted from retired pay Provides monthly tax-free payments based on retiree pay and VA disability rating Available to all Retirees from all components and all Branches of Service Note: This is a DOD program – VA assists with information

INCLUDES IU FROM 1-1-04 NON TAXABLE 1-1-08 INCLUDES MEDICAL RETIREMENT CH 61 LESS THAN 20 YEARS INCLUDES TEMPORARY DISABILITY RETIRED LIST (TDRL) INCLUDES TEMPORARY EARLY RETIREMENT AUTHORITY (TERA) CAN GET ONLY CRSC OR CRDP NOT BOTH CRSC ALWAYS BEST FOR VA RATED DISABILITIES OF LESS THAN 50% MUST ELECT BETWEEN DECEMBER & JANUARY OF EACH YEAR

Who Is Eligible for CRSC? Injury/Illness claimed must result from at Must have All Four Least One 1. AC, RC, NG with Retirees: 20-Years Service Chapter 61 Medical** Temporary Disability Retired List (TDRL)** Temporary Early Retirement Act (TERA)*** Simulating War (SW) Hazardous Service (HS) Instrumentality of War (IN) Armed Conflict (AC) 2. 10% or greater VA rated injury that is combat- related 3. Receiving military retired pay Note: Includes VA presumptive injuries 4. Military retired pay is reduced by VA disability payments (VA Waiver) *Program inception June 2003 **Medical Chapter 61 and TDRL retirees with one to 19 years are eligible ***TERA retirees with 15-19 years are eligible for CRSC, but not if they choose severance 11

Simulating War Hazardous Service Directly caused by military training Injuries occurring at special training locations or during FTX’s are not simulating war unless directly related to the training PT, sporting events or accidents relating to maintenance are not considered simulating war Hazardous Service Includes, but is not limited to: Aerial Flight – Parachute Duty Demolition Duty – Experimental Stress Duty Diving Duty Disability must be directly caused by actual performance of hazardous duty Example: Being a Jump Master, having multiple jumps or being assigned to an Airborne unit is not automatic evidence of cause for Hazardous Service

Instrumentalities of War A vehicle, vessel or device designed primarily for military use or a non-unique device used in a particular hazardous manner by the military, or a civilian vehicle pressed into a “combat-platform” i.e., mount machine gun Incurrence during an actual period of war is not required Used for its intended purpose; for example, injuries occurred during routine maintenance would not be considered combat “related” Armed Conflict Incurred while the Soldier was engaged in armed conflict Incurred while the Soldier was a prisoner of war or detained against his/her will by a hostile force Incurred while attempting escape from prisoner of war status

AMOUNT PAYABLE: AMOUNT EQUAL TO AMOUNT OF COMPENSATION VA WOULD PAY FOR THE COMBAT RELATED DISABILITIES DID NOT INCLUDE DEPENDENTS ALLOWANCE PRIOR TO 1-1-04 CANNOT EXCEED GROSS RETIRED PAY

CRSC Claim Form Section I: Personal Identification Section II: Preliminary CRSC Criteria Section III: Service History Section IV: Combated-relatedness determination Section V: Documentation Inventory Section VI: Certification and Waiver Section VII: Signature 15 * If you are currently receiving CRDP payments and apply for CRSC, DFAS will give you whichever payment is higher.

Supporting Documents DO Submit: DO NOT Submit: A signed claim form Copies of ALL VA rating decisions which include the letter and the narrative summaries Medical documentation from a Military Treatment Facility (MTF) or Veteran’s Administration (VA) Medical Center Copies of ALL DD214’s and DD215’s Official documents that supports “HOW” the specific disability being claimed meets the criteria for combat-related DO NOT Submit: Electronic media, EKGs, lab slips, or dental records Personal or “Buddy” statements The top two reasons CRSC claims are disapproved: Documentation submitted does not tell HOW the injury occurred The VA-rating decision Narrative Summary was not provided 16

Handout #2: CRSC (Double click to open)

CRSC Summary What is it? Who is eligible? How to qualify? How to file? Provides monthly tax-free payments based on Retiree pay and VA disability rating Who is eligible? Retirees whose retired pay is being reduced by VA disability payments How to qualify? Injury or Illness claimed must result from Simulating War (SW) Hazardous Service (HS), Instrumentality of War (IN), or Armed Conflict (AC) How to file? Submit DD Form 2860 with appropriate supporting documentation as outlined in Program Guidance