Opinion ID: 2960871
Heading Depth: 3
Heading Rank: 1

Heading: Military retirement pay and disability

Text: Generally a uniformed service member may request to retire and receive longevity retirement benefits after completing 20 years of creditable service.10 Longevity 7 Young v. Kelly, 334 P.3d 153, 157 (Alaska 2014) (citing Frost v. Ayojiak, 957 P.2d 1353, 1355 (Alaska 1998)). But see Heber v. Heber, 330 P.3d 926, 930 (Alaska 2014) (explaining denials of Rule 60(b)(4) motions seeking relief from void judgments are reviewed de novo because “validity of a judgment is strictly a question of law” (quoting Leisnoi, Inc. v. Merdes & Merdes, P.C., 307 P.3d 879, 884 (Alaska 2013))). 8 Watega v. Watega, 143 P.3d 658, 663 (Alaska 2006). 9 Lee v. Konrad, 337 P.3d 510, 518 (Alaska 2014) (footnote omitted). 10 See 10 U.S.C. § 3914 (“[A]n enlisted member of the Army who has at least 20, but less than 30, years of service . . . may, upon his request, be retired.”). -11- 7050 retirement benefits awards are a function of retired base pay11 and 2.5 times the member’s creditable years of service.12 But if a member suffers a physical disability during service and as a result is unfit to perform Army duties, the Army may retire the member with disability retirement pay.13 We refer to this latter form of retirement as Chapter 61 disability retirement.14 When a member receives a Chapter 61 disability retirement, the disability rating is stated as a percentage — e.g., 70% disabled.15 A member retired from the Army for permanent physical disability may determine monthly retirement as a function of retired base pay and either the disability rating percentage or the creditable years of 11 Retired base pay is the member’s average monthly salary earned during the member’s highest 36 months. See 10 U.S.C. § 1407(b) (“[T]he retired pay base or retainer pay base of a person under this section is the person’s high-three average.”); 10 U.S.C. § 1407(c) (“[T]he total amount of monthly basic pay to which the member was entitled for the 36 months . . . for which the monthly basic pay to which the member was the highest, divided by . . . 36 . . . .”). 12 The member’s high 36 month salary is multiplied by a percentage — 2.5 times the member’s creditable years of service stated as a percentage — in order to determine monthly retired pay. See 10 U.S.C. § 1401(a);10 U.S.C. § 1409(b) (“[T]he percentage to be used . . . is the product (stated as a percentage) of . . . [2.5] and . . . the member’s years of creditable service . . . .”). 13 See 10 U.S.C. § 1201(a) (“Upon a determination . . . that a member . . . is unfit to perform the duties of the member’s office, grade, rank, or rating because of physical disability incurred while entitled to basic pay . . . , the Secretary may retire the member with retired pay computed under [10 U.S.C. § 1401] . . . .”). 14 See 10 U.S.C. ch. 61 §§ 1201-1222. 15 See 10 U.S.C. § 1216a. -12- 7050 service percentage.16 The member “is entitled to be paid under the applicable formula that is most favorable.”17 Chapter 61 disability retirement is not the only form of disability payment available to veterans. Members who are disabled as a result of an injury suffered or aggravated in the line of duty also are entitled to Department of Veteran Affairs disability (VA disability).18 A member’s entitlement to VA disability does not depend on a Chapter 61 decision to retire the member for permanent physical disability.19 Unlike the member’s Chapter 61 disability rating — a rating based on the member’s ability to perform Army duties20 — the member’s VA rating covers all disabilities suffered in the line of duty and may differ from the Chapter 61 rating.21 A member’s VA disability 16 10 U.S.C. § 1401(a) (citing 10 U.S.C. §§ 1201, 1204). When computing retirement as a function of the member’s disability rating, the disability percentage used may not exceed 75%. Id. 17 10 U.S.C. § 1401(b). For example, a member retiring after 22 years of service would be entitled to 55% of the member’s retired base pay (22 x 2.5 = 55). If that member had been retired by the Army due to a permanent physical disability and had received a 60% disability rating, then the member w ould be entitled to receive 60% of retired base pay. See 10 U.S.C. § 1 401(a) (citing 10 U.S.C. §§ 1201, 1204). And if that same member were retired by the Army due to a permanent physical disability with a 40% disability rating, then the member would still be entitled to 55% of retired base pay because payments are calculated using the formula that is most favorable to the member. See 10 U.S.C. § 1401(b). 18 38 U.S.C. § 1110 (2012). 19 See id. See also 38 U.S.C. § 1114 (compensation table). 20 10 U.S.C. § 1201. 21 38 U.S.C. § 1110. See also Myers v. United States, 50 Fed. Cl. 674, 690 n.41 (Fed. Cl. 2001). -13- 7050 payment is a function of the member’s VA disability rating and the member’s number and type of dependents.22 Historically a member’s receipt of VA disability payments was contingent on the member waiving an equal amount of retired pay.23 But two programs now provide for concurrent receipt or repayment of waived retired pay.24 Combat-related special compensation (CRSC) allows veterans disabled in combat to receive compensation in lieu of retirement payments up to the amount waived to receive VA disability benefits.25 Concurrent retirement and disability pay (CRDP) is a phase-in program allowing qualifying disabled veterans to receive VA disability pay while waiving incrementally smaller amounts of retirement pay and providing for receipt of full retirement for all qualified disabled veterans pay by 2014.26 Both programs include exceptions for 22 38 U.S.C. §§ 1114-1115. 23 38 U.S.C. §§ 5304-5305. Members have incentive to waive retired pay for VA disability payments because VA disability payments are not taxed. 26 U.S.C. § 104(a)(4). 24 See 10 U.S.C. §§ 1413a-1414. 25 See 10 U.S.C. § 1413a(a) (“The Secretary concerned shall pay to each eligible combat-related disabled uniformed services retiree who elects benefits under this section a monthly amount for the combat-related disability of the retiree determined under subsection (b).”); § 1413a(b) (“[T]he monthly amount to be paid an eligible combat-related disabled uniformed services retiree under subsection (a) for any month is the amount of compensation to which the retiree is entitled under title 38 for that month, determined without regard to any disability of the retiree that is not a combatrelated disability. . . . The amount paid to an eligible combat-related disabled uniformed services retiree for any month . . . may not exceed the amount of the reduction in retired pay that is applicable to the retiree for that month under sections 5304 and 5305 of title 38.”). 26 See 10 U.S.C. § 1414(a) (“[A] member or former member of the uniformed (continued...) -14- 7050 members retired by the Army under Chapter 61, limiting CRSC to an amount equal to the member’s longevity retirement27 or requiring waiver of concurrent retired pay exceeding the amount the member would have received from a longevity retirement.28