Updated January 17, 2019August 11, 2020
Concurrent Receipt of Military Retirement and VA Disability
Concurrent receipt refers to a veteran’s simultaneous
receipt of two types of monetary benefits: military retired
pay from the Department of Defense (DOD) and disability
compensation from the Department of Veterans Affairs
(VA). Prior to 2004, existing laws and regulations
stipulated that a military retiree could not receive both
payments. As a result, military retirees with disabilities
recognized by the VA would incur a retired pay offset (i.e.,
dollar-for-dollar reduction) by the amount of their VA
compensation.
The FY2003 and FY2004 National Defense Authorization
Acts (NDAA) authorized, for the first time, two separate
and distinct components of the concurrent receipt program,
Combat Related Special Compensation (CRSC), and
Concurrent Retirement and Disability Payments (CRDP).
An eligible retiree cannot receive both Concurrent
Retirement and Disability Payments (CRDP) and
Combat-Related Special Compensation (CRSC).
removes the previously required offset of VA payments.
Under the offset, if a nominal member was eligible to
receive $1,000 per month in retired pay from DOD, and
$800 per month in VA disability pay based on their VA
rating, the VA pay would offset $800 of the retired pay. The
individual would receive $1,000 total ($800 in VA
compensation and $200 in military retired pay). Under
CRDP, an eligible retiree in this example would receive
$1,000 in retired pay from DOD plus $800 from the VA for
a total of $1,800.
Military retirees with at least a 50% service-connected
disability as rated by the VA are eligible for CRDP (see
Figure 1). There are currently two groups of retirees who
are not eligible for CRDP benefits. The first group is nondisability military retirees with service-connected
disabilities (not combat-related) that have been rated by the
VA at 40% or less. The second group includes disability
(Chapter 61) retirees with service-connected disabilities and
with less than 20 years of service.
Figure 1. CRDP Eligibility Flowchart
The common criteria that define eligibility for both of these
programs is: (1) all recipients must be military retirees and
(2) they must also be eligible for VA disability
compensation. An eligible retiree cannot receive both
Concurrent Retirement and Disability Payments (CRDP)
and Combat-Related Special Compensation (CRSC). The
retiree may choose whichever is most financially
advantageous to him or her and may move back and forth
between either benefit during an annual open season. In
2016, approximately one-third of all military retirees
collecting retired pay were either receiving CRDP or CRSC
for a total annual cost of $10.3 billion.
Table 1. Comparison of CRSC and CRDP
CRSC
CRDP
Classification
Special
compensation
Military retired
pay
Qualified
disabilities
Combat-linked
disabilities
Service-connected
disabilities
Federal taxation
Non-taxable
Taxable
Claim process
Apply to branch
of service
Automatic
Source: Derived from Defense Finance and Accounting Service
Concurrent Retirement and Disability
Payments (CRDP)
CRDP was first authorized in the FY2004 NDAA and was
phased in over a 10-year period between 2004-2013. CRDP
is sometimes referred to as restored retired pay, as it
Source: CRS
Notes: “Member” refers to a retired member of the Armed Forces.
Temporary Early Retirement Authority (TERA) retirees are those
retired with less than 20 years of service due to force management
requirements. Disability ratings are awarded in 10% increments.
Concurrent Retirement and Disability
Payments (CRDP)
CRDP Recipients and Costs
As of September 30, 20172018, there were 577,399625,765 CRDP
recipients at an annual cost of $11.412.8 billion. The
Congressional Budget Office has previously estimated that
eliminating CRDP would save $139 billion between 2018
and 2026 (CBO, Dec. 8, 2016). CBO estimates that
has previously
estimated that extending the program to those with a VA
disability of 40%
or less would cost an excess of $30 billion over a 10-year period and that
further extending the benefit to Chapter 61 retirees would
cost approximately $5.8 billion over a 10-year period.
Combat Related Special Compensation
over a 10-year period.
CRDP was first authorized in the FY2004 NDAA and was
phased in over a 10-year period between 2004-2013. CRDP
is sometimes referred to as restored retired pay, as it
Combat Related Special Compensation
Source: Derived from Defense Finance and Accounting Service
https://crsreports.congress.gov
Concurrent Receipt of Military Retirement and VA Disability
CRSC is considered special compensation and not restored
retired pay. Under CRSC, the VA offset still applies;
however, CRSC reimburses the member for some, or all, of
the VA offset. The amount of CRSC depends on the
percentage of the disability that is combat related (CRSC
rating) and may not exceed the reduction in retired pay.
These factors make the calculation of CRSC more complex
than CRDP, as every veteran’s situation may be different. It
may be simplest to think of the total CRSC benefit as three
separate payments, (1) retired pay from DOD minus VA
disability payment based on VA rating; (2) VA disability
payment based on VA disability rating; (3) CRSC payment
from DOD based on CRSC rating.
CRSC Recipients and Costs
As of September 30, 2018, DOD reported that 91,740
retirees were receiving CRSC for an annual cost of $1.1
billion.
Figure 2. CRSC Eligibility Flowchart
The process for qualifying for CRSC is not automatic.
Retirees must apply to their parent military service which
has the responsibility for verifying that the disability is
combat-related.
Combat Eligibility for CRSC
Those who are entitled to and/or are receiving military
retired pay and have a disability rated by the VA that meets
either of the following two criteria are eligible for CRSC
(see Figure 2):
A disability that is “attributable to an injury for which
the member was awarded the Purple Heart,” and is not
rated as less than a 10% disability by the VA; or
A disability rating resulting from involvement in “armed
conflict,” “hazardous service,” “duty simulating war,” or
“through an instrumentality of war.”
Special Rule for Chapter 61 (Disability) Retirees
Some individuals who have a permanent and stable
condition rated at greater than 30% by DOD may be
disqualified from military service and are eligible to receive
a pension from DOD prior to completing 20 years of
service. These individuals are sometimes called Chapter 61
retirees after the applicable section in Title 10, United
States Code. An individual may not receive two separate
lifelong government annuities from federal agencies for the
same purpose or qualifying event. As such, a special rule
applies to the calculation of CRSC for Chapter 61 retirees.
This rule caps the concurrent receipt payment at the amount
for which the retiree would have qualified based solely on
years of service, or longevity. In some instances, the special
rule could limit or completely eliminate the concurrent
receipt payment. In other instances, application of the rule
may not result in any changes.
For those whose CRSC payment is limited or eliminated by
the special rule, there may be a perceived inequity between
CRSC recipients with 20 or more years of service
(longevity retirees) and Chapter 61 disability retirees who
generally have less than 20 years of service. To resolve this
potential issue, Congress could modify or eliminate the
special rule or limit its application to specific military
operations. However, some observers may note that
eliminating or modifying the special rule would result in
paying for the same disability twice, by DOD and by VA.
Source: CRS
Note: “Member” refers to a retired member of the Armed Forces.
Temporary Early Retirement Authority (TERA) retirees are those
retired with less than 20 years of service due to force management
requirements.
Relevant Statute
Title 10, Chapter 71 of the United States Code, Computation of
Retired Pay
10 U.S.C. §1413a Combat-related special compensation
10 U.S.C. §1414 Concurrent retirement and disability payments
38 U.S.C. §5304 Prohibition against duplication of benefits
CRS Products
CRS Report R40589, Concurrent Receipt of Military Retired Pay
and Veteran Disability: Background and Issues
for Congress, by
Kristy N. Kamarck and Mainon A. Schwartz
CRS Report RL34751, Military Retirement: Background and
Recent Developments, by Kristy N. Kamarck
Other Resources
Statistical Report of the Military Retirement System, DOD
Office of the Actuary
Defense Finance and Accounting Service (DFAS)
Kristy N. Kamarck, Analyst in Military Manpower
IF10594
https://crsreports.congress.gov
Concurrent Receipt of Military Retirement and VA Disability
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