Background
The National Defense Authorization Act (NDAA) of 2008, Section 641 expands eligibility of the Combat-Related Special Compensation (CRSC) entitlement to those with less than 20 years of service.
The CRSC entitlement is computed in accordance with Department of Veterans Affairs (DVA) pay tables. Most of the members who will be eligible as a result of the NDAA expansion, have retired under a disability law. Those who retired under a disability law will incur an offset to their CRSC entitlement. Title 10 U.S.C, section 1413a is very specific when it comes to the Special rules for Chapter 61 disability retirees. DFAS is obligated to reduce the CRSC payment amount by the difference between the member’s pay computed for disability and the pay he or she would have received for his years of service (longevity).
Eligibility
There are approximately 211,000 retirees, Chapter 61, who are currently eligible to apply. They must meet the eligibility criteria of being in receipt of both retired pay and DVA compensation.
Members must apply to their military branch of service. Members should enclose evidence to show how a disability was incurred in a combat situation with their application. The respective military service branches will approve or disapprove all or a portion of each claim on the application.
For those members who are approved, their military branch of service will send an award letter to them and a copy to DFAS. Once DFAS receives the approved award letter, payment will be initiated within approximately 30 days.
This payment will be received by the member within approximately 30 to 60 days after end of month cutoff times are incorporated and timing of exchanging data files with the DVA. Retroactive payments will generally be issued within 30 days of receiving the first monthly payment. The effective start date of the retroactive payments is January 1, 2008.
Only retirees that are excluded from eligibility are those who are reserve retired, age 60.
Example Computation
Retirement computations vary according to each individual retirement date, retirement age, and years in service. The example provided is only to explain the calculation method.
For those retirees who are eligible for CRSC entitlement, but retired under a disability retirement law, an offset is calculated before CRSC entitlement is calculated as follows:
Example - E6 retired at 60% with 16 years of service
|
Disability Retirement Payment
|
$1,170.00
|
|
Retirement pay calculated based on years of service
|
$780.00
|
|
Difference between two retirement methods (offset amount)
|
$390.00
|
In the example given, $390 monthly would be offset from any monthly CRSC entitlement computed. The CRSC entitlement plus any remaining retired pay cannot exceed retired pay based on years of service.
CRSC VA Award Offset Monthly
Percentage Amount Amount CRSC Entitlement
|
10%
|
$117.00
|
-
|
$390.00
|
=
|
$0.00
|
|
20%
|
$230.00
|
-
|
$390.00
|
=
|
$0.00
|
|
30%
|
$356.00
|
-
|
$390.00
|
=
|
$0.00
|
|
40%
|
$512.00
|
-
|
$390.00
|
=
|
$122.00
|
|
50%
|
$728.00
|
-
|
$390.00
|
=
|
$338.00
|
|
60%
|
$921.00
|
-
|
$390.00
|
=
|
$531.00
|
|
70%
|
$1,161.00
|
-
|
$390.00
|
=
|
$771.00
|
|
80%
|
$1,349.00
|
-
|
$390.00
|
=
|
$780.00
|
|
90%
|
$1,517.00
|
-
|
$390.00
|
=
|
$780.00
|
|
100%
|
$2,527.00
|
-
|
$390.00
|
=
|
$780.00
|
|
|
|
|
|
|
|
Special considerations:
-
The CRSC entitlement amounts for approved Combat-Related combined disability percentages less the $390 example offset amount are shown using CRSC entitlements at the Veteran only rates.
-
CRSC entitlements plus any remaining retired pay cannot exceed retired pay based on years of service. Thus, the above example shows that the CRSC recipient approved at 10, 20 or 30 percent would not receive any funds. This does not mean that every situation would result in $0 due at those percentage rates.
-
As shown in the above example, you may have received an approved CRSC claim, and still not receive any funds. Disability percentages often increase which may change your entitlement amount at a later date.
