Retiree and Annuitant Pay: Change to CRDP Amount

Obama Steals From Disabled Vets

Wednesday, August 18, 2010

Beginning with the June 1, 2010 paycheck, Concurrent Retirement Disability Pay (CRDP) will be rounded down to the nearest dollar amount, rather than paid to the exact penny.

This change will be applied to all future payments including any future retroactive computations. Because this change represents less than one dollar per month, we will not recoup previous payments that were not rounded down.

The law requires that all amounts computed under Chapter 71 of Title 10, including CRDP, be rounded to the next lower multiple of $1. However, a recent review showed that CRDP was being paid to the exact penny. This change is being made to adhere to the legal requirements for the entitlement.

FAQs
Why did my CRDP drop on June 1, 2010, when there was no change in my payment amount from the DVA?

The law requires that CRDP payments be rounded down to the nearest dollar amount. A recent review identified that CRDP was not being rounded down, but rather was being paid to the exact penny. Therefore, beginning with the payment dated June 1, 2010, CRDP will no longer be paid to the exact penny, but will be rounded down to the nearest $1. This change will be applied to all future payments including any future retroactive payments.

Will I be charged a debt for the CRDP payments I received before June 1, 2010 that were paid to the exact penny instead of rounded down to the nearest dollar?

No. DFAS will not re-compute previous CRDP payment to recoup the amounts that were not rounded down to the nearest dollar. However, if a pay change requires a retroactive computation, then the new retroactive computation will drop the cents.

Link to source http://www.dfas.mil/rapay/changetocrdpamount.html

http://canadafreepress.com/index.php/article/26716