There is a general rule of law that a military retiree may not receive both Disability Compensation from the Department of Veterans Affairs (VA Disability Compensation) and military retired pay concurrently [at the same time]. Instead, a military retiree may waive his/her military retired pay, dollar for dollar, in order to receive VA Disability Compensation. This law is located at Title 38 United States Code (U.S.C.), sections 5304 and 5305.
The law provides a limited exception to this general rule. Under the limited exception, military retirees (other than those retired by the military under Chapter 61 for disability) who meet the eligibility criteria listed below are not subject to the general rule. There are special rules that apply to Chapter 61 Military Disability Retirees that can be found in Title 10 United States Code section 1414(b).
This limited exception has been often referred to as Concurrent Retirement and Disability Pay or CRDP. However, CRDP is not a term used in the law. It is simply meant to convey that some military retirees may have the right to concurrently receive their military retirement pay (including military disability retired pay) and VA Disability Compensation.
To be eligible to receive both military retired pay and VA Disability Compensation concurrently, a member who did not retire under Chapter 61 for disability must:
- Be entitled for any month to both military retired pay and VA Disability Compensation; and
- Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities. [1]
Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive both military retired pay and Veterans Affairs (VA) disability compensation. This was prohibited until the CRDP program began on January 1, 2004. CRDP is a “phase in” of benefits that gradually restores a retiree’s VA disability offset. This means that an eligible retiree’s retired pay gradually increased each year until the phase in was complete effective January 2014. You do not need to apply for CRDP. If qualified, you will be enrolled automatically.[2]
If you have questions about your CRSC eligibility, please call DFAS at 800-321-1080.
[1] https://www.dfas.mil/RetiredMilitary/disability/crdp/
[2] https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Concurrent-Retirement-and-Disability-Pay-(CRDP)-
— EANGUS NATIONAL OFFICE