RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

Archive for the 'Retiree News' Category

Ohio State Tax Exemption

Posted by Service Officer on 15th February 2008

OHIO STATE TAX: Recently passed Ohio legislation exempts military retirement pay from Ohio personal income tax and exempts estates of armed forces members who died while serving in combat zones from probate fees. The legislation also extends the 20% credit available to certain military persons on civil service examinations to any member of the National Guard or a reserve component of the U.S. Armed Forces who has completed more than 180 days of active duty service pursuant to an order of the President or an act of Congress. H.B. 372 Laws 2007, effective 24 DEC 07. [Source: Clark, Schaefer, Hackett & Co Tax Update 9 Feb 08 ++]

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Combat-Related Special Compensation (CRSC) eligibility

Posted by Service Officer on 15th February 2008

CRSC UPDATE 37: The 2008 National Defense Authorization Act (NDAA) was signed into law on 29 JAN 08. The NDAA expanded Combat-Related Special Compensation (CRSC) eligibility to include those who were medically retired under Chapter 61with less than 20 years of service, effective 1 JAN 08. A Chapter 61 retiree is anyone who was medically retired from military service. Chapter 61 is a new component for CRSC. Medically retired Veterans must still provide documentation that shows a causal link between a current VA disability and a combat-related event. CRSC will not begin processing claims until the DoD provides program implementation instructions. Potentially eligible retirees can begin to gather the required documentation (VA rating decision, DD214, medical records) needed to submit their claim. Required documentation includes a signed claim form and:

1. Copy of Chapter 61 Board results (Chapter 61 claimants only).

2. Copies of ALL VA rating decisions which include the letter and the narrative summaries

3. Copies of ALL DD214′s

4. Medical records that support “HOW” the injury occurred for each claimed disability that meets the criteria for combat-related. Refer to CRSC website to learn what combat-related is.

The CRSC website www.crsc.army.mil will be kept updated with program guidance and claim information. For questions and further guidance send email to crsc.info@us.army.mil or contact the CRSC call center at 1(866) 281-3254. [Source: U.S. Army Wounded Warrior Program Northeast Team Ayandria Barry input 5 Feb 08 ++]

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Voluntary Separation Incentive

Posted by Service Officer on 15th February 2008

There is a group of disabled veterans on the DOD payroll that are totally excluded from the benefits of the restoration of concurrent receipt: those separated under provision of title 10 US Code Sec 1175 – Voluntary Separation Incentive (VSI) that was used in conjunction with Temporary Early Retirement Authority (TERA, PL 102-484 Sec 4403(f)) to reduce the size of the military establishment during 1992 through 2001. Beginning 31 DEC 92, VSI was offered to service members having at least 6 but less than 20 years of service. They receive an annual amount funded by the Department of defense that equals the multiplication product of four factors: (1) their base pay at separation, (2) number of years of service, (3) 12 and (4) 2.5%. Note that while the annual amount is identical to the 12 times the monthly amount they would have received if retired for the same length of service, the VSI amount is not considered retirement pay. If the VSI recipient later qualifies for VA compensation for service connected disability, the same title 38 US Code sections that require a $1 for $1 offset of military retired pay also require the same offset of the VSI amount.

While the 2003 NDAA included TERA retirees under Concurrent Retirement Disability Pay (CRDP, 10 USC 1414) it excludes VSI recipients because they are not “retired.” The 2008 NDAA includes Chapter 61 medical disability retirees under the Combat Related Special Compensation (CRSC, 10 USC 1413a) but not CRDP. Regardless, one can be retired under Chapter 61 with a minimum of 30 days active service. Extending CRSC to Chapter 61 restores their retirement pay (based on 2.5% x length of service x base pay) that is offset by VA disability compensation. Thus there is some form of relief of the VA disability compensation offset extended to TERA and Chapter 61 retirees, but absolutely no relief for VSI recipients. Those interested in seeing legislation to correct this omission should contact their legislators and request his/her sponsorship of a bill. For sure, the 2009 NDAA should include VSI recipients in concurrent receipt. A suggested editable letter with automatic transmission means can be found at http://capwiz.com/usdr/issues/alert/?alertid=10921911&queueid=[capwiz:queue_id] to assist in this endeavor. [Source: USDR Action Alert 3 Feb 08 ++]

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Military Retiree Alert – Beneficiary Information

Posted by Service Officer on 15th February 2008

Military retirees need to check their beneficiary information on the reverse side of their Military Retiree Account Statement. Some retirees have reported an unauthorized beneficiary name change. The Defense Finance and Accounting Service said it has no way of ascertaining whose identity may have been stolen, resulting in a beneficiary change. If this becomes a widespread issue, they most likely will put out at notice. Those retirees that have the wrong beneficiary on their statement should contact DFAS immediately to change their beneficiary, and let them know it was changed without their authorization. The DFAS number is: 1-800-321-1080. [Source: VetJobs Veteran Eagle 1 Feb 08 ++]

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