CSB/REDUX and Medical/Disability Retirement

[DRTDEVL]

What is the name of your state (only U.S. law)? TN resident in Iraq

The other day I received my CSB/REDUX notice via AKO. I know about the standard REDUX program, but the notice contained wording about exemptions for Disability Retirement, specifically waiving the 20 year requirement.


My questions would be:

Does electing to take the $30K CSB have any effect on my pay once I am on the disabled retired list?

Will it affect the COLA or base percentage awarded?

If yes, would my later claim through the VA for disability retirement be affected as well, or is VA disability pay exempt?



My situation: Approaching 15 years AFS, suffering from Arthritis, Degenerative Disc Disease and Lupus. I have fought to remain on AD thus far, but there are no guarantees as to how long I will be allowed to stay. The only guarantee I have at this time is my conditions would allow me to be awarded disability, and my time in service would allow me a comfortable retirement check once placed on disability.

TIA

 

[IrishLady47]

If you elect the CSB/Redux and then are retired for disability, your retired pay percentage will be calculated under the High-3, not the redux formula. However, since you elected the CSB, you would be subject to the reduced COLA (1% less each year until age 62 when you'd get a one-time catch-up, then back to 1% less).

If retired for disability before you reach 20 years of active service, you would not be subject to recoupment of the CSB since a disability retirement is involuntary.

Information about CSB/Redux is available at www.armyg1.army.mil/retire. Details about pay computation are in volume 7, DODFMR.

 

[IrishLady47]

Forgot about the VA Disability Compensation. No, electing the CSB/Redux does not affect that.

However, if you retire with less than 20 years AFS on a disability, even if you receive a 50% or higher VA disability rating, as the law stands now, you would not be eligible for CRDP, only CRSC. If rated at less than 50%, not eligible for CRDP, and, as you probably know, you waive the amount of retired pay equal to the VA disability pay.

Which is still beneficial as VA disability is 100% non-taxable whereas only a portion of your disability retired pay is non-taxable.

And, the concurrent receipt issue will probably continue to be revised as it has already been so several times since enactment in 2003.