|Lead Moderator, Veterans Issues & Education |
Posted by XOTROOPA
quoting the DFAS newsletter:
The Director's Corner by Commander Ed McFarland, SC, USN:
Welcome to the first issue of the DFAS Retired Pay Newsletter for 2009. In this issue you will find information on The American Recovery and Reinvestment Act of 2009, offset of pay for disability-based compensation, safekeeping of bonds, the Combat-Related Special Compensation (CRSC)/Concurrent Retirement and Disability Payments (CRDP) Open Season which was extended through Feb. 28, 2009. Also, we have provided information on where you can find each individual Service's newsletter. http://www.dfas.mil/rna-news/march2009/directorscorner.html
Changes to Federal Tax Withholding:
Public Law 111-05, The American Recovery and Reinvestment Act of 2009, was signed into law by President Obama on Feb. 17, 2009. This act authorized a tax credit for most workers, including recipients of Retired and Annuity Pay. http://www.dfas.mil/rna-news/march2009/chgfedtax.html
Offset of Pay for Disability-based Compensation (Method A):
We have received numerous inquiries regarding the offset of pay for disability-based compensation. Legislation states: "The retired pay of a member retired under Chapter 61 of this title with 20 years or more of service otherwise creditable under Section 1405 of this title, or at least 20 years of service computed under section 12732 of this title, at the time of the member's retirement is subject to reduction under sections 5304 and 5305 of title 38, but only to the extent that the amount of the member's retired pay under Chapter 61 of this title exceeds the amount of retired pay to which the member would have been entitled under any other provision of law based upon the member's service in the uniformed services if the member had not been retired under Chapter 61 of this title."
Put more simply, those retirees compensated based upon disability will have their Concurrent Retired Disability Payment (CRDP) or Combat-Related Special Compensation (CRSC) reduced, or offset, but only by the amount of the difference between their Method A and Method B calculations.
For example, if a retiree is entitled to $2,200 each month through Method A, disability-based compensation and only $1,400 through Method B, service-based compensation, he will be compensated at the higher $2,200 Method A amount. If the same retiree is awarded $1,100 through CRSC, the $1,100 amount will be offset by the $800 difference between the original $2,200 Method A and $1,400 Method B types of compensation, resulting in a $300 CRSC amount. With the original $2,200 disability-based retired pay and the addition of the $300 CRSC amount, the retiree will receive a total $2,500 monthly compensation. http://www.dfas.mil/rna-news/march2009/offsetpayfordisa...sedcompensation.html
Safekeeping of Bonds:
The savings bond system allows Active Duty military service members for all branches of service to request bonds they have purchased through allotment deductions to be kept in safekeeping. Currently, these bonds are held indefinitely as long as the service member remains on Active Duty or until the member requests the bonds to be mailed to a current mailing address. http://www.dfas.mil/rna-news/march2009/safekeepingofbonds.html
CRSC/CRDP Open Season:
At the beginning of the year, if a retiree was eligible for both CRDP and CRSC he/she had the opportunity to participate in the CRSC/CRDP Open Season. For 2009, this annual election was extended through Feb. 28, 2009 allowing the retiree to choose which payment was preferred (federal law states that you can receive CRDP or CRSC; not both).http://www.dfas.mil/rna-news/march2009/crsccrdpopenseason.html
Newsletters from each branch of service
Were you aware each branch of service has a newsletter available online? Below are the website addresses for these newsletters: http://www.dfas.mil/rna-news/march2009/newsletters.html
Do you qualify for Combat-Related Special Compensation (CRSC)?
CRSC may entitle you to additional funds designed to compensate you for the reduction of your military retired pay due to the receipt of Department of Veterans Affairs (VA) compensation (also known as VA waiver). With CRSC, you can receive either partial or full concurrent receipt of your military retirement pay and your VA disability compensation: http://www.dfas.mil/rna-news/march2009/doyouqualifyforcrsc.html
Paid-up SBP rebuttal period (DD Form 2656-11):
The "Paid-up Survivor Benefit Plan (SBP)" program, effective Oct. 1, 2008, ensures all retirees who are at least 70 years of age and paid SBP premiums for at least 360 months (30 years) will have their premiums stopped and are no longer required to make monthly payments beginning in the month they meet the eligibility requirements: http://www.dfas.mil/rna-news/march2009/pdupsbprebuttalperoid.html
Retired and Annuity Pay Seminars http://www.dfas.mil/retiredpay/2009retseminarsched.html
Designation of Beneficiary:
We at Defense Finance and Accounting Service (DFAS) emphasize the need for Retired military service members to make certain their Designation of Beneficiary paperwork is up to date and on file. http://www.dfas.mil/rna-news/march2009/designationofbeneficiary.html
***In order to download the entire March 2009 Retired Pay Newsletter in .pdf format, click here*** http://www.dfas.mil/rna-news/march2009/RetirdPayNewsletterMar09.pdf
| Ruptured Duck-Derelict Vets|
Dave, I know you just posted the newsletter but I was wondering if you may know how I could get old copies of LES statements. I contacted DFAS and was told they can't go back beyond 1993, just seems messed up to me.
|Lead Moderator, Veterans Issues & Education |
I just moved the newsletter from a topic on Concurrent Receipt to its own topic. I would think that issue is related to moving to newer computer systems from very old computer systems. Probably the old system did not have online data. The state of computers in government (and business) 15 years ago was very different. A a fortune 20 company, we only stored a few weeks of data online. Everything else was to tape back then.
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