Retroactive Compensation Pay Project                                                                           Presently, more than 140,000 military retirees are or were entitled to dual payments as a result of CRSC and CRDP.  Some are due money solely from the military, some are due money solely from VA, and some are due money from both Departments.  Effective November 1, 2006, an initial group of 29,688 retirees were referred to VA for possible payment of previously withheld compensation.  Of that number, over 28,000 were successfully paid without field station involvement with total payments amounting to more than $43 million.  The November group involved retirees due payment because of CRDP only.                                                                             How Retirees Are Selected for Payment                                          The military retired pay centers govern the order in which retirees’ accounts in the current 140,000-retiree potential retroactive pay pool is reviewed.  Generally speaking, the retirement pay centers divided the retirees in the identified population into three groups. A retiree in "Level 1” is referred to VA for consideration of retroactive compensation.                                             Level 1:  Retirees for whom there is sufficient information in the retiree pay records to calculate potential retroactive monthly benefits due.                                      Level 2:  Retiree pay records that are missing one or more pieces of data required to calculate potential entitlement.  The retired pay centers believe that the missing data for most Level 2 retirees exists in other electronic systems at the payment centers.  Importing that data into the pay file will likely enable the record to become a Level 1 record.  In some cases, however, a review of historical paper records may be necessary to obtain the data that will enable a retiree’s pay file to be updated and moved to Level 1.                                           Level 3:  These are the most complex and difficult records.  Level 3, for the most part, consists of the following types of retiree records:                                                           Retirees who are now deceased but appear to have had some entitlement. Retirees who have garnishments due to alimony. Retirees with debts. Retirees with other garnishments and offsets.

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