Readers of Tom Philpott's Military Update column sound off

'Glitch' Update for Under-20 CRSC, SBP Paid-Up Rule

A few years ago I e-mailed you about the Combat-Related Special Compensation (CRSC) program and how it didn't benefit young GI's of the Vietnam War who were forced to retire because of physical disabilities incurred during active duty in a combat zone.   At that time, only retirees with 20 or more years of service were eligible.

Since then -- I believe this past January -- Congress passed legislation opening up the CRSC program to Chapter 61 retirees no matter how long they served. By doing so, a big wrong has been righted and the average young GI who was maimed by this war finally has been noticed for the job they did over there.

As a Navy Chapter 61 retiree, I have been researching on the internet what I have to do to apply for this benefit.  Some of the paperwork can be quite confusing and the entire process is time consuming.  In my research, I also came across something called the "Chapter 61 Rule" used to configure any payments.  It sounds pretty confusing.  An example I was given made it seem as though it would not be worth the effort to apply.

Can you give me your take on this rule and explain, in layman's terms, how it really works?

ANDY TOBIAS
USN-Ret.

This is such a complicated issue so I turned to Col. Mike Hayden (USAF-Ret.), a retiree benefits expert for Military Officers Association of America, to help understand and explain it.

As you stated, a provision in the fiscal 2008 National Defense Authorization Act does extend CRSC eligibility to Chapter 61 retirees with fewer than 20 years of service.  Colonel Hayden notes that this "was a huge advancement" against the ban on concurrent receipt of both disability pay and earned retirement benefits for years served.

But the CRSC extension provision, as written, "did contain a glitch in the calculation formula that can, in some circumstances, create an offset of retired pay even though the disabled retiree may not be in receipt of any DoD pay," Hayden explains.

 A "one-size-fits-all" example of this is difficult to create, Hayden explains.  "Every individual claim is different due to the variables that go into the calculation. The original service disability rating, service member's length of service at time of retirement, VA rating, and CRSC rating from the member's service all factor into the final CRSC amount."

 Even though the CRSC application paperwork can be confusing, and even though, because of the glitch, an application may, under certain circumstances, net little or no additional CRSC, Hayden advises all disability retirees with combat-related injuries or ailments to apply.  "We are optimistic that this will be corrected," he says.

Indeed, an amendment to fix the glitch had been introduced this fall by Sen. Harry Reid (D-Nev.), the Senate majority leader. That amendment, and more than 350 others, never came to a vote, however, because Senate leaders decided one of the amendments would have sparked a controversial showdown over congressional "earmarks" only weeks before the November election.   Efforts to end the glitch in expanded CRSC calculations are more likely to succeed in 2009. – Tom Philpott

SBP Paid-Up Rule: Glitch Too?

I am sure by now you know about the glitch in implementing the law to end Survivor Benefit Plan premiums, as of Oct. 1, 2008, for participants who are over age 70 and have made at least 360 payments (30 years).

It seems the computer program used to determine who is eligible to benefit from the paid-up law only considered the time that premiums were paid to cover current spouses.  In my case I paid for over 27 years for my first wife and only since 2000 for my current wife.  But the computer program only recognized premiums paid since 2000.

A very nice customer service person at the Defense Finance and Accounting Service told me that if this has not been corrected by January, I should call back, and DFAS will review my record.  Apparently DFAS is trying to correct this situation and should do so by January.

LYNN P.
Senior Master Sergeant, USAF-Ret.
Via e-mail

This glitch is not with computers but with data files.  For some retirees, SBP premium records on file at the Defense Finance and Accounting Service differ from paperwork that retirees have in their personal possession, an official explained.

"We are working with the Defense Data Manpower Center, which maintains historical pay data on all military retirees, to ensure that everyone receives proper credit for all premiums paid," he said.  "But quite frankly, over the years, with various service [record] consolidations, and consolidation into DFAS, we realize there are instances where not all data was transferred."

As a result, DFAS is setting up an appeals process for those who believe they qualify for the SBP Paid Up Rule but are not among 137,000 retirees who saw premiums end automatically after October.

"We will be adding a notice to all December retiree account statements reflecting what our records show [on] total creditable months toward Paid Up SBP.  People will have an opportunity to dispute their standing beginning in January," the official said.

All disputes must be made using DD Form 2656-11, which will be available for download off the DFAS website sometime in December.  Until then, no dispute can be filed.

The dispute period will run from January through June 2009.  In that period, retirees with questions about filing a dispute can call the Retired and Annuitant Pay Call Center at 1-800-321-1080.

Retirees who have not seen premiums stopped automatically will need documentation to make their dispute case.  A point to consider, this official said, is that SBP premiums, upon remarriage, do not resume until the first anniversary of the second marriage.  So some retirees who believe they meet the Paid Up Rule still have payments left to make to reach the 360 threshold. – T. P.

Letters may be edited for clarity or length.  Write to Military Forum, P.O. Box 231111, Centreville, VA  20120-1111, send e-mail to militaryforum@aol.com or visit www.militaryupdate.com.