Disability and retirement pay


Q. I am currently a Defense Department employee and also retired Air Force officer enrolled in the Federal Employees Retirement System.  I served 21 years active military service.  I am making deposits to Defense Finance and Accounting in order to potentially buy back my post 1957 military service time at time of my final retirement. During my military service,  I sustained injuries performing hazardous duty (instrumentality of war).  As a result, I have a 90 percent VA disability rating and Air Force Combat Related Special Compensation (CRSC) at the 90 percent rate.

If I decide to combine my Military Service time with my FERS annuity in the future, would I have to surrender Air Force retirement pay, VA disability, CRSC? Currently the majority of my monthly compensation is VA Disability Compensation and CRSC. I reviewed regulations that seems to apply.  Can you please clarify them for me?

A: If your service-connected disability was either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, you wouldn’t have to waive your military retired pay when you retire from your civilian job. However, your agency cannot take your word for this. Proof must be provided by your branch of service. Check with your personnel office for the procedure to use to obtain such proof.


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  1. Hi, Reg-

    I’m 59 with 4 years Fed service in the VA. I’m medically retired (13 years Active-duty Army) with Combat Related Special Compensation -CRSC at 90% and VA Disability at 100%. Can I retire at 60 when I have 5 years Fed service and buy back the 13 years and make the MSD? From my understanding, I keep the CRSC 90% check, the VA 100% Disability check, Social-Security check at 60 and FERS retirement? The FERS retirement will not take away any of the CRSC or VA pay which is not taxed?

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