1 / 54

The Road to Concurrent Receipt

The Road to Concurrent Receipt. The Next Stop Along the Way December 13, 2003 Osan AB Retiree Activities Office. Overview. Note 1: All pay figures are based on 2003 pay rates Note 2: MOAA pamphlet on 2004 NDAA bill served as basis for Concurrent Receipt portion of this briefing.

anisa
Download Presentation

The Road to Concurrent Receipt

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Road to Concurrent Receipt The Next Stop Along the Way December 13, 2003 Osan AB Retiree Activities Office

  2. Overview Note 1: All pay figures are based on 2003 pay rates Note 2: MOAA pamphlet on 2004 NDAA bill served as basis for Concurrent Receipt portion of this briefing • Introduction and background • The retired pay offset • The Military Coalition • 2000: Special Compensation for Severely Disabled Retirees, expanded in 2001 • 2002: Combat-Related Special Compensation

  3. Overview • 2003: Expands the Combat Related Special Compensation eligibility; and adds first true Concurrent Receipt of disability pay and retired pay • Jan 1, 2004 – What you need to know • Comparing the benefits and eligibility • What must you do to apply • Looking to the future

  4. Introduction and Background • Retired pay offset – the tax on disabled military retirees

  5. Introduction and Background • Retired pay offset – the tax on disabled military retirees • Military retirees eligible for retired pay for years of service have some or all of their retired pay offset by tax-free disability pay

  6. Introduction and Background • Retired pay offset – the tax on disabled military retirees • Military retirees eligible for retired pay for years of service have some or all of their retired pay offset by tax-free disability pay • Some 20-year 100% disabled retirees receive the same pay as 100% disabled veterans who served as little as 2 years; the retiree’s long years of service count for nothing

  7. Introduction and Background • Military service organizations banded together into The Military Coalition

  8. Introduction and Background • Military service organizations banded together into The Military Coalition • Defining common goals added power to lobbying efforts on behalf of all veterans and retirees

  9. Introduction and Background • Military service organizations banded together into The Military Coalition • Defining common goals added power to lobbying efforts on behalf of all veterans and retirees • Over the past decade, elimination of disabled military retiree tax became increasingly prominent as a common goal of TMC

  10. Introduction and Background • Breakthrough in 2000 with legislation defining Special Compensation for Severely Disabled Retirees

  11. Introduction and Background • Breakthrough in 2000 with legislation defining Special Compensation for Severely Disabled Retirees • $300 for 100% disabled; $200 for 90% disabled and $100 for 80% and 70% disabled

  12. Introduction and Background • Breakthrough in 2000 with legislation defining Special Compensation for Severely Disabled Retirees • $300 for 100% disabled; $200 for 90% disabled and $100 for 80% and 70% disabled • In 2001, SCSD increased to $125 for 80% disabled, and added $50 for 60% disabled

  13. Introduction and Background • Breakthrough in 2000 with legislation defining Special Compensation for Severely Disabled Retirees • $300 for 100% disabled; $200 for 90% disabled and $100 for 80% and 70% disabled • In 2001, SCSD increased to $125 for 80% disabled, and added $50 for 60% disabled • Tax-free benefit

  14. Introduction and Background • 2002 legislation added Combat-Related Special Compensation starting Jun 1, 2003

  15. Introduction and Background • 2002 legislation added Combat-Related Special Compensation starting Jun 1, 2003 • All retirees with Purple Heart and with any level of disability rating are eligible for CRSC

  16. Introduction and Background • 2002 legislation added Combat-Related Special Compensation starting Jun 1, 2003 • All retirees with Purple Heart and with any level of disability rating are eligible for CRSC • All others with disability rating of 60% or higher and combat- or operations-related disabilities are eligible for CRSC

  17. Introduction and Background • 2002 legislation added Combat-Related Special Compensation starting Jun 1, 2003 • All retirees with Purple Heart and with any level of disability rating are eligible for CRSC • All others with disability rating of 60% or higher and combat- or operations-related disabilities are eligible for CRSC • Tax-free benefit

  18. Introduction and Background • Limitations of CRSC

  19. Introduction and Background • Limitations of CRSC • Member responsible for application and for providing all supporting documentation

  20. Introduction and Background • Limitations of CRSC • Member responsible for application and for providing all supporting documentation • Except for Purple Heart awardees, benefits limited to 60% or greater disability rating

  21. Introduction and Background • Limitations of CRSC • Member responsible for application and for providing all supporting documentation • Except for Purple Heart awardees, benefits limited to 60% or greater disability rating • Max benefit (100% disabled) of $2,193, even though some members retired in higher grades and for longer service have more retired pay offset by VA disability, and especially for family member add-ons

  22. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees

  23. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees • Adds true Concurrent Receipt with front-loaded 10 year phase-in

  24. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees • Adds true Concurrent Receipt with front-loaded 10 year phase-in • For retirees with at least 20 years service

  25. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees • Adds true Concurrent Receipt with front-loaded 10 year phase-in • For retirees with at least 20 years service • Also for TERA retirees

  26. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees • Adds true Concurrent Receipt with front-loaded 10 year phase-in • For retirees with at least 20 years service • Also for TERA retirees • Only those with 50%-100% disability rating

  27. Jan 1, 2004 – What You Need to Know • Expands CRSC to all disability ratings, not just Purple Heart awardees • Adds true Concurrent Receipt with front-loaded 10 year phase-in • For retirees with at least 20 years service • Also for TERA retirees • Only those with 50%-100% disability rating • Eliminates Special Compensation for the Severely Disabled

  28. Jan 1, 2004 – Expanded CRSC • All compensable disability ratings (10%-100%) eligible for combat- and training-related disability pay • As a direct result of armed conflict • While engaged in hazardous service (e.g., flight, diving, parachute duty) • While performing duty under conditions simulating war (exercises, field training) • Through an instrumentality of war (combat vehicles, weapons, Agent Orange, etc.)

  29. Jan 1, 2004 – Concurrent Receipt • Ten-year phase-in, front loaded with 95% of retired pay restored by 2010

  30. Jan 1, 2004 – Concurrent Receipt • Ten-year phase-in, front loaded with 95% of retired pay restored by 2010 • In 2004: $750 for 100%; $500 for 90%; $350 for 80%; $250 for 70%; $125 for 60%; and $100 for 50%

  31. Jan 1, 2004 – Concurrent Receipt • Ten-year phase-in, front loaded with 95% of retired pay restored by 2010 • In 2004: $750 for 100%; $500 for 90%; $350 for 80%; $250 for 70%; $125 for 60%; and $100 for 50% • Retirees eligible for CRSC have annual option to change over to CR and vice versa

  32. Concurrent Receipt Eligibility • All retirees (including National Guard and Reserves) with at least 20 years of service who have a VA disability rating of 50% or higher

  33. Concurrent Receipt Eligibility • All retirees (including National Guard and Reserves) with at least 20 years of service who have a VA disability rating of 50% or higher • Temporary Early Retirement Authority (TERA) retirees (for CR but not CRSC)

  34. Concurrent Receipt Eligibility • All retirees (including National Guard and Reserves) with at least 20 years of service who have a VA disability rating of 50% or higher • Temporary Early Retirement Authority (TERA) retirees (for CR but not CRSC) • Medical retirees who are also eligible for longevity retirement (20 years or more)* * - Chapter 61 retirees would receive same compensation as other retirees with same years of service

  35. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) CR Comparing CRSC and CR

  36. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones Comparing CRSC and CR

  37. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones Comparing CRSC and CR

  38. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones 10-year phase-in, front-loaded to give 95% after 6 years Comparing CRSC and CR

  39. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim Tax-free benefit CR 50% or higher rating, but all disabilities qaulify, not just the combat-related ones 10-year phase-in, front-loaded to give 95% after 6 years Comparing CRSC and CR

  40. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim Tax-free benefit CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones 10-year phase-in, front-loaded to give 95% after 6 years Taxable benefit Comparing CRSC and CR

  41. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim Tax-free benefit Option to change to CR at any time CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones 10-year phase-in, front-loaded to give 95% after 6 years Taxable benefit Comparing CRSC and CR

  42. CRSC All disability ratings, but dependent on how disability was incurred (combat-related) Full benefit immediately upon approval of claim Tax-free benefit Option to change to CR at any time CR 50% or higher rating, but all disabilities qualify, not just the combat-related ones 10-year phase-in, front-loaded to give 95% after 6 years Taxable benefit Can change if eligible for CRSC Comparing CRSC and CR

  43. CR - Retiree 100% Disabled Years 1-5 1 Single retiree with $3,000 retired pay, $2,193 offset ($807 not offset) 2Retiree with spouse, one minor child and two qualified children over 18 = $2,868 offset to retired pay of $3,000 ($132 not offset)

  44. CR - Retiree 100% DisabledYears 6-10 1 Single retiree with $3,000 retired pay, $2,193 offset ($807 not offset) 2Retiree with spouse, one minor child and two qualified children over 18 = $2,868 offset to retired pay of $3,000 ($132 not offset)

  45. The Bottom Line • CRSC Retiree’s total monthly income: • In 2003 $2,868 + $132 + $2,193 = $5,193 • In 2004 $2,868 + $132 + $2,193 = $5,193 • In 2010 $2,868 + $132 + $2,193 = $5,193 • CR Retiree’s total monthly income: • In 2003 $2,868 + $132 = $3,000 • In 2004 $2,868 + $132 + $750 = $3,750 • In 2010 $2,868 + $132 + $2,740 = $5,740

  46. CRSC/CR Flexibility • Retiree with family qualifies for CRSC, takes it for immediate full benefit • As time passes and CR increases, it means more money; changes from CRSC to CR • Children graduate and lose eligibility, reducing VA benefit from $2,868 to $2,318 making after-tax CR less than CRSC • Retiree changes back to tax-free CRSC

  47. What You Must Do to Apply • CRSC • Apply using DD Form 2860 • Include military service records and medical records to support claim

  48. What You Must Do to Apply • CRSC • Apply using DD Form 2860 • Include military service records and medical records to support claim • CR • No action, it will start automatically on January 1, 2004 (although payments may be delayed, you will be paid from this date)

  49. What’s Missing • Concurrent Receipt for those rated at less than 50% for non-combat disabilities

  50. What’s Missing • Concurrent Receipt for those rated at less than 50% for non-combat disabilities • Elimination of the widow’s “tax” on the Survivor Benefit Plan annuity

More Related