‘Concurrent Receipt’ Can Restore Ex-Spouses' Pay

I am a divorced military retiree with a 70-percent disability rating awarded by the Department of Veterans Affair. I am now in receipt of concurrent pay. My question has to do with what my attorney refers to as disposable income.

Because my ex-wife currently gets 50 percent of my retirement, is she also entitled to 50 percent of the concurrent pay?

No one around here seems to know the answer.

JESS T.
Sergeant First Class, USA-Ret.
Via e-mail

The answer depends on what type of “concurrent pay” a disabled retiree receives. Concurrent Retirement and Disability Pay (CRDP) is, in fact, restored retired pay previously offset, dollar for dollar, by amounts retirees received in VA disability compensation.

The CRDP entitlement is being phased in over several years for retirees with disabilities rated 50 percent to 90 percent. Retirees with 100-percent disability ratings already have seen their full retired pay restored. As military retired pay is restored in this way, former spouses who have valid court orders on file with the Defense Finance and Accounting Service (DFAS) are automatically seeing their payments rise or begin again.

In some cases, however, disabled retirees for many years have been receiving all of their compensation from VA and no retired pay at all. As a result, their ex-spouses might not have contacted DFAS for years. DFAS officials can’t even be sure they have current addresses. These former spouses, therefore, will have to file valid court orders and actually apply for a share of military retirement before payments can begin. More information and applications can be found at DFAS website, www.dod.mil/dfas/militarypay/, under “garnishment.”

The other concurrent pay, Combat-Related Special Compensation (CRSC), is considered "special compensation" rather than retired pay, so it is not subject to division under the Uniformed Services Former Spouses Protection Act (USFSPA). CRSC is subject to garnishment for alimony and child support. – Tom Philpott

LONG WAIT

I decided to participate in the SBP open season and to pay off immediately the debt of back premiums. I called the Defense Finance and Accounting Service Sept. 5 and was told that sending a cashier’s check would greatly reduce processing time. I was even given a special address.

I mailed a $16,530 check the next day. They received it Sept. 11. It was not deposited until Sept. 21 and only cleared my bank Sept 25.

I kept checking the DFAS web site for a corrected Retiree Account Statement. When none appeared I called and was told my account “has not yet been credited with the payment."

Because DFAS delayed accepting my money, an SBP deduction of $979.61 was withheld from both my October and November retired pay. Finally, on Oct. 30, a new RAS appeared that corrected my pay. But it did not refund the $1959.22 withheld.

This time I did not call DFAS because it seemed a lost cause. Instead I complained to Sen. Jeff Sessions (R-Ala.). His office contacted someone and, finally, on Nov. 14, I received a check for two months of overpayments.

Military retirees who participated in the SBP open season [which closed Sept. 30] need to be aware that if a debt was created, don’t pay it off in a lump sum. They apparently do not know how to handle it.

On a related matter, retirees with access to a military base should be able to go somewhere on base, with a problem like I’ve described, and get face-to-face answers. I called both the retirement section and the SBP section on Maxwell Air Force Base, Ala., and was told the same at both: “Unfortunately, when you retire, you must deal with DFAS." Bummer.

CHARLES R. GREEN
Montgomery, Ala.

FUTURE PAY CHART

I am interested in the effect of the new 40-year-pay chart on current retirees. I retired from active duty in 1990 with a total of 35 years of service. Is there any chance that those of us who have served beyond 30 years, but have retired, will be grandfathered into the new pay chart and have our pay adjusted to recognize our length of service?

ED HUBBARD
Colonel, USAF-Ret.
Via e-mail

No. The purpose of the extended pay chart, which takes effect next April, is to encourage current and future service members to serve longer career.  – T. Philpott

DOCTOR PAY CUTS

It matters not whether congressmen or senators are among those re-elected or are cleaning out your desks, they have a duty to the Americans people to correct planned Medicare cuts in physician reimbursements that are mandated by the Sustained Growth Rate formula.

In the first session of the 109th Congress, lawmakers applied only a stop-gap band-aid on the problem and it expires in December. In the second session, in a show of bi-partisanship, 265 House members on Sept. 11 petitioned their leadership for action before recessing for the election. Nothing happened. Thus far the Senate has remained silent on this issue.

If the 109th Do Nothing Lame Duck Congress doesn't act before adjournment, then on Jan. 1, 2007, Medicare will automatically reduce physician reimbursements by 5 percent and, over the next nine years, by at least 37 percent. Over the same period, physician practice costs are expected to increase at least 22 percent. Since 2001, Medicare payment rates have been well below increases in practice costs for physicians.

Congress can do two things to fix this broken system. For the short term pass legislation to increase physician payments by 2.8 percent in 2007, as recommended by Congress' own Medicare Payment Advisory Commission.  Lawmakers still have time before the final gavel falls.

In the long term, Congress should replace Medicare's flawed Sustainable Growth Rate formula with one that reflects increases in physician practice costs.

If Congress fails to act, many physicians will simply “downsize” their practices by refusing to accept Medicare assignment and patients. Many local physicians have already taken this step. Around here, some have even transitioned in veterinary practice. What a waste.

REGINALD GRIER
Forestville, Md.

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