service on September 24, 1975 will pay taxes on their total retired pay unless all of their retired pay is based upon disability or the disability resulted from an armed conflict. 4–8. CRSC AND CRDP PROGRAMS. Combat Related Special Compensation (CRSC) and Concurrent Retirement Disability Pay (CRDP) are designed to provide compensation for that portion of military retirement pay that was lost due to the receipt of VA disability payments. CRSC focuses on combat related disabilities while CRDP focuses on service related disabilities. In order to receive CRSC, you must apply and receive approval for the compensation. The application, review, and approval process is administered by the individual military departments. Additional information can be obtained from the offices listed in the chart below. CRSC payments are equal to the amount of VA disability compensation that has been offset from retired pay based on those disabilities determined to be combat related. However, CRSC payments are reduced for those retirees whose combined retired pay and CRSC compensation would exceed the member’s normal retired pay based on length of service. CRSC payments are tax–exempt and not subject to division with a former spouse. Concurrent Retirement Disability Pay (CRDP) is designed to provide compensation to those members whose military retired pay has been offset due to the receipt of VA disability
If an enlisted member held a commission as a reserve officer and at least ten of the member’s qualifying years for retirement were served as a commissioned officer, he or she may retire and receive retired pay based upon the commissioned rank held. 4–6. OFFICER RETIREMENTS. Military officers are normally eligible for voluntary retirement upon completing twenty years of Total Active Federal Military Service (TAFMS), at least ten years of which were active commissioned service. Unless the officer is entitled to retire at a higher grade under some other law, retirement is usually at the highest grade satisfactorily held on active duty provided certain time–in– grade requirements are met. Officers having twenty years of active service who desire to retire before completing ten years of active commissioned service, must normally retire in an enlisted status. If their DIEMS date places them in the High–36 category, only their enlisted basic pay will be used to calculate the average of their highest three years of basic pay. Officers who do not complete the time–in–grade requirement will normally be retired at their previous grade. However, those who are eligible for the High–36 formula may count their service at their highest grade for purposes of determining the highest 36 months of basic pay. Mandatory Retirements. The Army, Navy, Marines, Air Force and Coast Guard all set their own policies, so the maximum age for service varies slightly in each branch, and even for different ranks within a branch. The policies change frequently based on military needs and budgets. In general, regular officers holding the rank of Major General and below (O–8 and below) are required to retire upon reaching age 64. Officers in the grades above Major General (O–9 and O–10) usually have a mandatory retirement age of 64 as well, but this can be extended to age 68 by the President. 4–7. DISABILITY RETIREMENTS. Members receiving disability retirement will receive the highest retired pay computed under one of the following formulas: a. Percentage of Disability Formula . This method determines retired pay by multiplying final basic pay times the percentage disability rating. b. Length of Service Formula. This method determines disability retired pay using the High–36 formula previously discussed. Disability retirees who were members of a uniformed service on September 24, 1975 generally do not have to pay taxes on that portion of their retired pay attributable to their disability. Disability retirees who were not a member of a uniformed
CRSC Approving Authorities ARMY Department of the Army Army Human Resources Command ATTN: CRSC Division 1600 Spearhead Division Avenue Fort Knox, KY 40122-5402 1-866-281-3254 NAVY & MARINE CORPS Department of the Navy ATTN: Combat Related Special Compensation 720 Kennon Street SE, Suite 309 Washington Navy Yard, DC 20374-5023 1-877-366-2772 AIR FORCE U.S. Air Force Personnel Center Disability Division (CRSC) 550 C Street West, Suite 6 JBSA Randolph, TX 78150-4708 1-800-525-0102
CHAPTER 4: MILITARY RETIREMENTS
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