Concurrent Receipt of Military Retired Pay and Veteran Disability: Background and Issues for Congress
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Concurrent Receipt of Military Retired Pay and June 22, 2023
Veteran Disability: Background and Issues for Congress
Updated June 16, 2025
(R40589)
Jump to Main Text of Report
Veteran Disability: Background and Issues for
Kristy N. Kamarck
Congress
Specialist in Military
Manpower
Concurrent receipt is the term used to describe the simultaneous receipt of two types of federal
monetary benefits. In the military context, this often describes the simultaneous receipt of
Mainon A. Schwartz
military retired pay from the Department of Defense (DOD) and disability compensation from
Legislative Attorney
the Department of Veterans Affairs (VA). Prior to 2004, existing laws and regulations dictated
that a military retiree could not receive two payments from federal agencies for the same
purpose; military retired pay and VA disability compensation were considered to fall under that
restriction. As a result, military retirees with physical disabilities recognized by VA had their
(taxable) military retired pay offset, or reduced dollar-for-dollar, by the amount of their (nontaxable) VA compensation.
Legislative activity on the issue of concurrent receipt began in the late 1980s and culminated in the provision for Combat-
Related Special Compensation (CRSC) in the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (P.L.
107-314). Since then, Congress has added Concurrent Retirement and Disability Payments (CRDP) for those retirees with a
disability rated at 50% or greater, extended concurrent receipt to additional eligible populations, and further refined and
clarified the program.
Concurrent receipt is applicable only to persons who are eligible for both (1) military retired pay and (2) VA disability
compensation. An eligible retiree cannot receive both CRDP and CRSC. The retiree may choose whichever is most
financially advantageous to him or her and may make benefit changes during an annual open season.
In FY2021, approximately 39% of the retired military population was receiving either CRSC or CRDP at an annual cost of
$18.5 billion. Nevertheless, there are also military retirees who receive VA disability compensation that are not eligible for
concurrent receipt. Determining whether to make some or all of this population eligible for concurrent receipt has been a
subject of debate in Congress.
Figure 1. Estimated Annual Concurrent Receipt Payments
FY2013-FY2021
Source: DOD Office of the Actuary, Statistical Reports on the Military Retirement System.
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Contents
Introduction ..................................................................................................................................... 1
Background ............................................................................................................................... 1
Military Retirement and VA Disability Compensation .................................................................... 2
Military Retirement ................................................................................................................... 2
Reserve Retirement ............................................................................................................. 3
Disability Retirement .......................................................................................................... 3
Temporary Early Retirement Authority .............................................................................. 4
VA Disability Compensation ..................................................................................................... 4
Interaction of DOD and VA Disability Benefits ................................................................. 4
Combat-Related Special Compensation .......................................................................................... 6
CRSC for Military Disability (Chapter 61) and TERA Retirees ............................................... 7
The Special Rule for Disability Retirees ............................................................................. 7
CRSC for Reserve Retirees ....................................................................................................... 8
CRSC Eligibility Summary ....................................................................................................... 8
Concurrent Retirement and Disability Payments ............................................................................ 9
CRDP for TERA Retirees ......................................................................................................... 11
Concurrent Receipt and Blended Retirement System Lump Sum Payments ................................. 11
CRSC and CRDP Comparisons and Costs .................................................................................... 12
Funding ................................................................................................................................... 12
Other Compensation for Injuries or Deaths Related to Military Service ...................................... 14
Claims Brought by Veterans .................................................................................................... 14
Claims Brought by Active-Duty Servicemembers .................................................................. 15
Other Options for Congress ........................................................................................................... 17
Eliminate or Sunset Concurrent Receipt Programs ................................................................. 17
Allow Concurrent Receipt for Combat-related Disabilities Only ........................................... 17
Extend CRDP to All Chapter 61 Disability Retirees ............................................................... 18
Modify or Eliminate the Special Rule ..................................................................................... 18
Split Compensation by Agency for Longevity and Disability ................................................ 18
Extend CRDP to Those with a 40% or Less VA Disability Rating ......................................... 18
Consider Interactions with other Federal Benefits .................................................................. 18
Modify Concurrent Receipt Normal Cost Responsibilities ..................................................... 20
Figures
Figure 1. Estimated Annual Concurrent Receipt Payments ............................................................ 2
Figure 2. Current CRSC Recipients by Disability Rating ............................................................... 7
Figure 3. CRSC Eligibility .............................................................................................................. 9
Figure 4. Current CRDP Recipients by Disability Rating ............................................................. 10
Figure 5. CRDP Eligibility ............................................................................................................. 11
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Tables
Table 1. Comparison of CRSC and CRDP .................................................................................... 12
Table 2. Number of Concurrent Pay Recipients and Estimated Annual Payments ....................... 13
Table 3. DOD Board of Actuaries Estimated Normal Cost Percentages ....................................... 21
Contacts
Author Information ........................................................................................................................ 22
Congressional Research Service
Concurrent Receipt of Military Retired Pay and Veteran Disability
Introduction
Concurrent receipt in the military and veterans context typically means simultaneously receiving
two types of federal monetary benefits: military retired pay from the Department of Defense military retired pay from the Department of Defense
(DOD) and disability compensation from the Department of Veterans Affairs (VA). Concurrent
receipt is applicable only to persons who are eligible for both (1) military retired pay and (2) VA
disability compensation. This report addresses the two primary components of the concurrent
receipt program: Combat-Related Special Compensation (CRSC) and Concurrent Retirement and
Disability Payments (CRDP). It reviews possible legislative options for Congress to consider.
Background
The historical precedent for offsets between veteran disability compensation and retired pay dates
back to the 19th century. In 1890 and 1891, when Congress was debating pension policies for
veterans of the Mexican War, certain Members expressed concern that some veterans drew more
than one federal annuity related to military service; a combination of pension plus retired pay
under the comparatively new retirement program (established in 1861), or a combination of
pension plus active-duty pay.1 As part of the FY1892 appropriations act, Congress first passed
legislation prohibiting concurrent payment of both military retired pay and a veteran pension
under the premise that it represented dual or overlapping compensation for the same purpose.2
Similar language was included in a number of subsequent laws.3 Congress modified the statutory
language in 1941 to give certain enlisted personnel a choice between retired pay or a disability
pension.4
In 1944 (P.L. 78-314), Congress adopted a system of offsetting military retired pay with VA
disability compensation. Under this system, retired military personnel were required to waive a
portion of their retired pay equal to the amount of VA disability compensation; a dollar-for-dollar
offset.5 If, for example, a military retiree received $1,500 a month in retired pay and was rated by
VA as 70% disabled (and therefore entitled to approximately $1,000 per month in disability
compensation), the offset would operate to pay $500 monthly in retired pay and $1,000 in
disability compensation. Thus, the retiree still received a total of $1,500 per month, but the
advantage for the retiree was that the VA disability compensation portion was not taxable. For
many years some military retirees and advocacy groups sought a change in law to permit receipt
of all, or some, of both payments without offset. Opponents of concurrent receipt have frequently
referred to it as double dipping, maintaining that it represents two payments for the same purpose
1 Historically, the use of the term “pension” with regard to military and veteran benefits has referred to payments to a
veteran based on the veteran's disability or financial need, or to the veteran's unremarried needy widow(er), or to a
veteran's needy parent(s). Benefits to retired military personnel have frequently not been considered “pensions” but
rather “retired or retainer pay”. This is because retirement from military service has often been characterized as reduced
duty with reduced pay, due to military retirees being subject to involuntary recall to active duty.
2 During legislative debate in 1891, Members of the Senate noted that longevity pay for military personnel “upon the
retired list” was intended to be compensation in full for military service and that receipt of both a disability pension and
retired pay arising from the same service would be prohibited. The bill text stated, “And provided further, That
hereafter no [disability] pension shall be allowed or paid to any officer, noncommissioned officer, or private in the
Army, Navy, or Marine Corps of the United States, either on the active or retired list.” Senate debate, Congressional
Record, vol. 22, part 3 (February 5, 1891), p. 2191.
3 Ch. 277, 27 Stat. 282, July 27, 1892; ch. 385, 31 Stat. 171, May 9, 1900; ch. 468, 34 Stat., 879, May 11, 1912; ch.
123, 37 Stat. 113; ch. 245, 41 Stat. 982, June 5, 1920; ch. 320, 43 Stat. 623, June 7, 1924. The U.S. Statutes at Large
are available at https://www.loc.gov/collections/united-states-statutes-at-large/.
4 P.L. 77-140; 55 Stat. 395.
5 38 U.S.C. §§5304-5305.
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or qualifying event.6 Supporters of concurrent receipt have argued that the two payments are for
different purposes: contending that retired pay is deferred compensation for a career of service
(longevity) and for availability for recall (as retainer pay), while the disability compensation is to
account for lost earning power, reduced quality of life, and/or additional expenses incurred with
respect to a service-connected disability.7
In the Bob Stump National Defense Act for Fiscal Year 2003 (NDAA) Congress created a benefit
known as Combat-Related Special Compensation (CRSC).8 For certain disabled retirees whose
disability is combat-related, CRSC provides a cash benefit financially identical to what
concurrent receipt would provide them. The FY2004 NDAA authorized, for the first time, the
phase-in of actual concurrent receipt (now referred to as Concurrent Retirement and Disability
Pay or CRDP) for certain retirees, along with an expanded CRSC program.9 The FY2005 NDAA
further liberalized the concurrent receipt rules contained in the FY2004 NDAA and authorized
immediate concurrent receipt for those with VA disability ratings totaling 100%.10 In 2007, as part
of the FY2008 NDAA, Congress expanded concurrent receipt eligibility to include those who are
100% disabled due to unemployability and provided CRSC to those who were medically retired
or retired prematurely due to force reduction programs prior to completing 20 years of service.11
The CRDP phase-in was fully implemented by 2014, and currently allows retirees with a VA
disability rated at 50% or greater to receive both full retired pay and full VA disability
compensation without any offset.
(DOD) and disability compensation from the Department of Veterans Affairs (VA). Prior to 2004, federal laws and regulations dictated that a military retiree could not receive two payments from federal agencies for the same purpose; military retired pay and VA disability compensation were considered to fall under that restriction. As a result, military retirees with physical disabilities recognized by VA had their (taxable) military retired pay offset, or reduced dollar-for-dollar, by the amount of their (nontaxable) VA compensation. Legislative activity on the issue of concurrent receipt began in the late 1980s and led to a provision for Combat-Related Special Compensation (CRSC) in the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (P.L. 107-314). Since then, Congress has added Concurrent Retirement and Disability Payments (CRDP) for those retirees with a disability rated at 50% or greater, extended concurrent receipt to additional eligible populations, and further refined and clarified the authorities for concurrent receipt benefits.
Military Retirement and VA Disability
Compensation
An understanding of military An understanding of militaryretirementretired pay, VA disability compensation, and the interaction of these , VA disability compensation, and the interaction of these
two benefits is helpful when discussing concurrent receipt. This section outlines these concepts.two benefits is helpful when discussing concurrent receipt. This section outlines these concepts.
Military Retirement
An active-duty servicemember typically becomes entitled to retired pay, an event frequently An active-duty servicemember typically becomes entitled to retired pay, an event frequently
referred to as referred to as vesting, upon completion of 20 years of service, regardless of age. Retirement for , upon completion of 20 years of service, regardless of age. Retirement for
longevity is typically referred to as a longevity is typically referred to as a regular or or non-disability retirement. A retired retirement. A retiredmemberservicemember is is
immediately paid a monthly annuity based on a percentage of their final base pay or the average immediately paid a monthly annuity based on a percentage of their final base pay or the average
of their high three years of base pay, depending on when they entered active duty.12 Retired pay
6 See, for example, Jim Garamone, “Double-dip retirement measure may become law,” Government Executive,
September 25, 2002, at https://www.govexec.com/defense/2002/09/double-dip-retirement-measure-may-become-
law/12585/.
7 See, for example, Mark Belinsky, The NDAA Is the Next Battleground in the Fight for Concurrent Receipt, Military
Officers Association of America (MOAA), July 6, 2022.
8 P.L. 107-314, §636; 10 U.S.C. §1413a.
9 P.L. 108-136, §§641-642.
10 P.L. 108-375, §642.
11 P.L. 110-181, §642.
12 CRS Report RL34751, Military Retirement: Background and Recent Developments, by Kristy N. Kamarck, for a
detailed description of active-duty retirement.
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of their high three years of base pay, depending on when they entered active duty.1 Retired pay accrues at a rate of 2.5% per year of service for those who entered service prior to January 1, accrues at a rate of 2.5% per year of service for those who entered service prior to January 1,
2018, and 2.0% for those who entered service on or after that date.2018, and 2.0% for those who entered service on or after that date.13
2 Reserve Retirement
Reserve component servicemembers become eligible for retirement upon completion of 20 years Reserve component servicemembers become eligible for retirement upon completion of 20 years
of qualifying service, regardless of age. However, their retired pay calculation is based on a point of qualifying service, regardless of age. However, their retired pay calculation is based on a point
system that results in a number of system that results in a number of equivalent years of service. of service.143 In addition, a reserve component In addition, a reserve component
retiree does not usually begin receiving retired pay until reaching age 60.retiree does not usually begin receiving retired pay until reaching age 60.154 Those reservists who Those reservists who
retire from service but do not yet receive retired pay are sometimes called retire from service but do not yet receive retired pay are sometimes called gray-area retirees.retirees.
Disability Retirement
While members of the active component are generally eligible for retired pay at 20 years of While members of the active component are generally eligible for retired pay at 20 years of
qualifying service and reserve component members at age 60, earlier eligibility is possible under qualifying service and reserve component members at age 60, earlier eligibility is possible under
some circumstances. Servicemembers found to be unfit for continued service due to physical some circumstances. Servicemembers found to be unfit for continued service due to physical
disability may be retired if the condition is permanent and stable and the disability is rated by disability may be retired if the condition is permanent and stable and the disability is rated by
DOD as 30% or greater.DOD as 30% or greater.165 These retirees are generally referred to as These retirees are generally referred to as Chapter 61 retirees, a , a
reference to Chapter 61 of Title 10, which covers disability retirement. As a result, some disability reference to Chapter 61 of Title 10, which covers disability retirement. As a result, some disability
retirees are retired before becoming eligible for longevity retirement while others have completed retirees are retired before becoming eligible for longevity retirement while others have completed
20 or more years of service.20 or more years of service.
A servicemember retired for disability may select one of two available options for calculating A servicemember retired for disability may select one of two available options for calculating
their monthly retired pay:their monthly retired pay:
1.
Longevity Formula. Retired pay is computed by multiplying the years of service Retired pay is computed by multiplying the years of service
times 2.5% or 2.0% (based on a date of entry into service before or after Jan 1, times 2.5% or 2.0% (based on a date of entry into service before or after Jan 1,
2018), then multiplying that result by the pay base.2018), then multiplying that result by the pay base.
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑅𝑒𝑡𝑖𝑟𝑒𝑑 𝑃𝑎𝑦 = (𝑦𝑒𝑎𝑟𝑠 𝑜𝑓 𝑠𝑒𝑟𝑣𝑖𝑐𝑒 𝑥 2.5% 𝑜𝑟 2.0%) 𝑥 (𝑝𝑎𝑦 𝑏𝑎𝑠𝑒)
2. Monthly Retired Pay= (years of service x 2.5% or 2.0%) x (pay base)
Disability Formula. Retired pay is computed by multiplying the DOD disability Retired pay is computed by multiplying the DOD disability
percentage by the pay base.percentage by the pay base.17
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑅𝑒𝑡𝑖𝑟𝑒𝑑 𝑃𝑎𝑦 = (𝑑𝑖𝑠𝑎𝑏𝑖𝑙𝑖𝑡𝑦 %) 𝑥 (𝑝𝑎𝑦 𝑏𝑎𝑠𝑒)
6Monthly Retired Pay= disability % x (pay base)
The maximum disability percentage that can be used under the disability formula is 75%.The maximum disability percentage that can be used under the disability formula is 75%.187 Since Since
the disability percentage method usually results in higher retired pay, it is most commonly the disability percentage method usually results in higher retired pay, it is most commonly
selected. Generally, military retired pay based on longevity is taxable. Retired pay computed selected. Generally, military retired pay based on longevity is taxable. Retired pay computed
13 An alternative retirement option, known as Redux, was also available for certain active-duty servicemembers,
depending on their date of entry.13
14 See CRS Report RL30802, Reserve Component Personnel Issues: Questions and Answers, by Lawrence Kapp and
Barbara Salazar Torreon.
15 P.L. 109-163, §614 reduced the age for receipt of retired pay for reserve component members by three months for
each aggregate of 90 days of certain types of active duty performed after January 28, 2008. Attempts since then to
make this benefit retroactive to September 11, 2001, have not been successful.
16 10 U.S.C. §1201.
17 10 U.S.C. §1401.
18 Ibid.
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under the disability formula is also fully taxed unless the disability is the result of a combat-under the disability formula is also fully taxed unless the disability is the result of a combat-
related injury.related injury.
Temporary Early Retirement Authority
Personnel retired due to force management requirements and before completing 20 years of Personnel retired due to force management requirements and before completing 20 years of
service are generally referred to as service are generally referred to as“"TERA retireesTERA retirees”" because the because the FY1993National Defense Authorization Act for Fiscal Year 1993 granted Temporary granted Temporary
Early Retirement Authority (TERA) as a force-sizing tool to entice voluntary retirements during Early Retirement Authority (TERA) as a force-sizing tool to entice voluntary retirements during
the drawdown the drawdownof the early 1990s.19through 1995.8 TERA retired pay is calculated in the same way as longevity TERA retired pay is calculated in the same way as longevity
retirement, but there is a retired pay reduction of 1% of the retired pay base for every year of retirement, but there is a retired pay reduction of 1% of the retired pay base for every year of
service below 20 years.service below 20 years.
VA DisabilityCompensation20
Compensation9 For a veteran to qualify for VA disability compensation, VA must make a determination that the For a veteran to qualify for VA disability compensation, VA must make a determination that the
veteran has a current disability that is causally related to a particular injury or disease sustained in veteran has a current disability that is causally related to a particular injury or disease sustained in
or aggravated by the veteranor aggravated by the veteran’'s service in the Armed Forces.s service in the Armed Forces.2110 Some exceptions exist for certain Some exceptions exist for certain
conditions that may not have been apparent during military service but which are presumed to be conditions that may not have been apparent during military service but which are presumed to be
service-connected. The VA has a scale of 11 ratings, from 0% to 100%service-connected. The VA has a scale of 11 ratings, from 0% to 100%. Each percentage rating entitles the veteran to a specific level of disability compensation, although there is no direct , although there is no direct
arithmetical relationship between the benefits paid at each step.arithmetical relationship between the benefits paid at each step. Each percentage rating entitles
the veteran to a specific level of disability compensation.2211 In a major difference from the DOD In a major difference from the DOD
disability retirement system, a veteran receiving VA disability compensation can ask for a medical disability retirement system, a veteran receiving VA disability compensation can ask for a medical
reexamination at any timereexamination at any time; a, and veteran who does not veteran who does not receivequalify for disability compensation upon disability compensation upon
separation or retirement from service can be examined or reexamined later. All VA disability separation or retirement from service can be examined or reexamined later. All VA disability
compensation is tax-free, which makes receipt of VA compensation desirable, even with the compensation is tax-free, which makes receipt of VA compensation desirable, even with the
operation of the offset.operation of the offset.
Interaction of DOD and VA Disability Benefits
As veterans, military retirees can apply to VA for disability compensation. A retiree may (1) apply As veterans, military retirees can apply to VA for disability compensation. A retiree may (1) apply
for VA compensation any time after leaving the service and (2) have their degree of disability for VA compensation any time after leaving the service and (2) have their degree of disability
changed by VA as a result of a later medical reevaluation, as noted above. Many retirees seek changed by VA as a result of a later medical reevaluation, as noted above. Many retirees seek
benefits from VA years after retirement for a condition that was incurred during military service benefits from VA years after retirement for a condition that was incurred during military service
but that does not manifest itself until many years later. Typical examples include hearing loss, but that does not manifest itself until many years later. Typical examples include hearing loss,
some cardiovascular problems, and conditions related to exposure to Agent Orange.some cardiovascular problems, and conditions related to exposure to Agent Orange.
The DOD and VA disability rating systems have much in common, but there are also significant The DOD and VA disability rating systems have much in common, but there are also significant
differences. DOD makes a determination of eligibility for disability retirement only once, at the differences. DOD makes a determination of eligibility for disability retirement only once, at the
time the individual separates from the service. Although DOD uses the VA rating schedule to
19 P.L. 102-484, §4403.
20 For more information, see CRS Report R44837, Benefits for Service-Disabled Veterans, coordinated by Scott D.
Szymendera.
21 While most individuals who have served in the Armed Forces of the United States may be regarded as veterans, a
military retiree is ordinarily someone who: (1) has completed a full active-duty military career (almost always at least
20 years of service), or who is disabled in the line of military duty and meets certain length of service and extent of
disability criteria; and (2) who is eligible for retired pay and a broad range of nonmonetary benefits from DOD after
retirement. A veteran is someone who has served in the Armed Forces but may not have either sufficient service or
disability to be entitled to post-service retired pay and nonmonetary benefits from DOD. Generally, all military retirees
are veterans, but not all veterans are military retirees. See CRS Report R42324, Who Is a “Veteran”?—Basic Eligibility
for Veterans’ Benefits, by Scott D. Szymendera.
22 VA disability compensation rates are available at https://www.benefits.va.gov/compensation/rates-index.asp.
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time the individual separates from the service. Although DOD uses the VA rating schedule to determine the percentage of disability, DOD measures disability, or lack thereof, against the determine the percentage of disability, DOD measures disability, or lack thereof, against the
extent to which the individual can or cannot perform military duties. Military disability retired extent to which the individual can or cannot perform military duties. Military disability retired
pay, unlike VA disability compensation, is usually taxable unless related to a combat disability.pay, unlike VA disability compensation, is usually taxable unless related to a combat disability.
As a result of the current disability process, a retiree can have both a DOD and a VA disability As a result of the current disability process, a retiree can have both a DOD and a VA disability
rating, but these ratings will not necessarily be the same percentage. The DOD percentage is rating, but these ratings will not necessarily be the same percentage. The DOD percentage is
primarily based on fitness for duty and may result in the medical separation or disability primarily based on fitness for duty and may result in the medical separation or disability
retirement of the servicemember.retirement of the servicemember.2312 The VA disability rating, on the other hand, is designed to The VA disability rating, on the other hand, is designed to
reflect the reflect the“"reductions in earning capacity,reductions in earning capacity,”" and the and the “"ratings shall be based, as far as practicable, ratings shall be based, as far as practicable,
upon the average impairments of earning capacity resulting from such injuries in civil upon the average impairments of earning capacity resulting from such injuries in civil
occupations.”24 Two major studies published in 2007 recommended a single, comprehensive
medical examination that would establish a disability rating that could be used by both DOD and
VA.25
The FY2008 NDAA required a joint DOD and VA report on the feasibility of consolidating
disability evaluation systems to eliminate duplication by having one medical examination and a
single-source disability rating.26 As a result, DOD and VA initiated a one-year pilot program, now
called the Integrated Disability Evaluation System (IDES), at two military bases. The program
was expanded to other sites in 2009 and 2010, and since September 2011 all newoccupations."13 Since September 2011, disability disability
retirement cases at facilities worldwide have been processed through IDES.27
As IDES was designed to streamline the disability evaluation process, DOD and VA now focus on
trying to improve sharing of health care data and records, a process that a congressional
commission deemed “vital to Service members who are leaving the DOD system with complex
medical issues and ongoing health care needs.”28 In September 2018, DOD and VA issued a joint
statement indicating their commitment to implement an integrated electronic health system in an
effort to allow for streamlined sharing of health care data between both departments and aid the
disability rating process.29
23 DOD, Disability Evaluation System, DODI 1332.18, November 10, 2022, p. 6, at
https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/133218e.PDF?ver=hBMKOYoIHi4EotQiJbezIA%
3D%3D.
24 38 U.S.C. §1155.
25 The President’s Commission on Care for America’s Returning Wounded Warriors (commonly referred to as the
Dole-Shalala commission) and the Independent Review Group on Rehabilitative Care and Administrative Processes at
Walter Reed Army Medical Center and National Naval Medical Center both contained similar recommendations
concerning disability processing.
26 P.L. 110-181, §1612.
27 U.S. Government Accountability Office, Military Disability System; Improved Monitoring Needed to Better Track
and Manage Performance, GAO-12-676, August 2012.
28 Military Compensation and Retirement Modernization Commission (MCRMC), Final Report of the MCRMC,
January 2015, p. 133, at https://apps.dtic.mil/dtic/tr/fulltext/u2/a625626.pdf.
29 Statement of the Secretary of Defense and Secretary of Veterans Affairs, Electronic Health Record Modernization
Joint Commitment, September 26, 2018, at https://www.va.gov/opa/publications/docs/EHRM-Joint-Commitment-
Statement.pdf. For more information see CRS Report R45987, MHS Genesis: Background and Issues for Congress, by
Bryce H. P. Mendez.
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retirement cases at facilities worldwide have been processed through the joint DOD and VA Integrated Disability Evaluation System (IDES).14
Combat-Related Special Compensation
The FY2003 NDAA,The FY2003 NDAA,3015 as amended by the FY2004 NDAA, as amended by the FY2004 NDAA,3116 authorized CRSC. Military retirees authorized CRSC. Military retirees
with at least 20 years of service and whowith combat-related injuries that meet either of the following two criteria are eligible for meet either of the following two criteria are eligible for
CRSC:CRSC:
• A disability that is A disability that is “"attributable to an injury for which the member was awarded attributable to an injury for which the member was awarded
the Purple Heart,the Purple Heart,”" and is not rated as less than a 10% disability by VA; and is not rated as less than a 10% disability by VA; or
•
A disability rating resulting from involvement in A disability rating resulting from involvement in “"armed conflict,armed conflict,” “hazardous
service,” “" "hazardous service," "duty simulating war,duty simulating war,”" or or “"through an instrumentality of war.through an instrumentality of war.”32
"17 This definition of This definition of combat-related encompasses disabilities associated with any kind of hostile encompasses disabilities associated with any kind of hostile
force; hazardous duty such as diving, parachuting, or using dangerous materials such as force; hazardous duty such as diving, parachuting, or using dangerous materials such as
explosives; and individual and unit training and exercises and maneuvers in the field. explosives; and individual and unit training and exercises and maneuvers in the field.
Instrumentalities of war include vehicles, vessels, or devices designed primarily for military Instrumentalities of war include vehicles, vessels, or devices designed primarily for military
service, like combat vehicles, Navy ships, and military aircraft. Injuries associated with service, like combat vehicles, Navy ships, and military aircraft. Injuries associated with
instrumentalities of war may also be those associated with, for example, munitions explosions or instrumentalities of war may also be those associated with, for example, munitions explosions or
inhalation of gases or vapors in combat training.inhalation of gases or vapors in combat training.
For CRSC, retirees must apply to their parent service (i.e., Army, Navy, Air Force, Marine Corps, For CRSC, retirees must apply to their parent service (i.e., Army, Navy, Air Force, Marine Corps,
or Space Force), and the parent service is responsible for verifying that the disability is combat-or Space Force), and the parent service is responsible for verifying that the disability is combat-
related. This process is application-driven, not automatic. CRSC payments are calculated by the related. This process is application-driven, not automatic. CRSC payments are calculated by the
amount of VA disability compensation that has been determined to be combat-related. CRSC amount of VA disability compensation that has been determined to be combat-related. CRSC
legislation does not end the requirement that the retireelegislation does not end the requirement that the retiree’'s military retired pay be reduced by the s military retired pay be reduced by the
amount of the total VA disability compensation the retiree receives. Instead, CRSC beneficiaries amount of the total VA disability compensation the retiree receives. Instead, CRSC beneficiaries
are to receive the financial equivalent of concurrent receipt as are to receive the financial equivalent of concurrent receipt as“"special compensation.special compensation.”" The The
statute explicitly states that CRSC is statute explicitly states that CRSC is not retired pay. retired pay.3318 As of September As of September 20212022, a total of , a total of 95,001
94,289 retirees were receiving CRSC (retirees were receiving CRSC (seesee Figure 21).19
).34
30 P.L. 107-314, §636.
31 P.L. 108-136, §642.
32 The FY2003 NDAA (P.L. 107-314) required that the disability be rated at least 60%. This requirement was repealed
by the FY2004 NDAA (P.L. 108-136).
33 10 U.S.C. §1413a(g).
34 DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended September 30,
2021, September 2022, p. 28.
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Figure 2. Current CRSC Recipients by Disability Rating
Number of recipients as of September 30, 2021
Source: DOD Office of the Actuary, DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30,20212022, September September 20222023 p. 68. p. 68.
Note: Data do not include Data do not include4042 individuals with an individuals with an unknown VA disability rating. VA disability rating.
CRSC for Military Disability (Chapter 61) and TERA Retirees
Servicemembers with a permanent DOD disability rating of 30% or greater
In some cases, a servicemember may have an illness or injury that affects fitness for further service in the military. If the military department evaluates that the servicemember has a permanent, stable disability rating of 30% or greater, the member may be retired and may be retired and
receive retired pay prior to completing 20 years of service.receive retired pay prior to completing 20 years of service.20 As noted earlier, these retirees are As noted earlier, these retirees are
generally referred to as Chapter 61 retirees. In addition to Chapter 61 retirees, those who generally referred to as Chapter 61 retirees. In addition to Chapter 61 retirees, those who
voluntarily retired under the TERA are also eligible for CRSC. The original CRSC legislation voluntarily retired under the TERA are also eligible for CRSC. The original CRSC legislation
excluded those active-duty members who retired with excluded those active-duty members who retired withlessfewer than 20 years of service. than 20 years of service.
The FY2008 NDAA expanded CRSC to include Chapter 61 and active-duty TERA retirees The FY2008 NDAA expanded CRSC to include Chapter 61 and active-duty TERA retirees
effective January 1, 2008.effective January 1, 2008.35 Eligibility no longer requires21 Eligibility does not require a minimum number of years of service a minimum number of years of service
or a minimum disability rating (other than the 30% DOD rating noted above for disability or a minimum disability rating (other than the 30% DOD rating noted above for disability
retirement); a 10% VA rating may qualify if it is combat-related. Eligible retirees must still apply retirement); a 10% VA rating may qualify if it is combat-related. Eligible retirees must still apply
to their parent service to validate that the disability is combat-related.to their parent service to validate that the disability is combat-related.
The FY2008 NDAA included almost all reserve disability retirees in the eligible CRSC The FY2008 NDAA included almost all reserve disability retirees in the eligible CRSC
population except those retired under 10 U.S.C. §12731b, which allows reservists with a physical population except those retired under 10 U.S.C. §12731b, which allows reservists with a physical
disability not incurred in the line of duty to retire with between 15 and 19 creditable years of disability not incurred in the line of duty to retire with between 15 and 19 creditable years of
service.service.36
22 The Special Rule for Disability Retirees
Historically, Congress has generally prohibited an individual from receiving two separate lifelong Historically, Congress has generally prohibited an individual from receiving two separate lifelong
government annuities from federal agencies for the same purpose or qualifying event. When government annuities from federal agencies for the same purpose or qualifying event. When
35 P.L. 110-181, §641.
36 Ibid.; 10 U.S.C. §12731b.
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authorizing CRSC, Congress created a authorizing CRSC, Congress created a special rule for Chapter 61 disability retirees who may be for Chapter 61 disability retirees who may be
eligible for both DOD disability retired pay and VA disability compensation.eligible for both DOD disability retired pay and VA disability compensation.3723 Application of the Application of the
special rule caps the CRSC at the amount at which the retiree could have qualified based solely special rule caps the CRSC at the amount at which the retiree could have qualified based solely
on years of service (longevity). In some instances, the special rule could limit or eliminate the on years of service (longevity). In some instances, the special rule could limit or eliminate the
concurrent receipt payment. In other instances, application of the rule may not result in any concurrent receipt payment. In other instances, application of the rule may not result in any
changes. Each individualchanges. Each individual’'s situation is unique s situation is unique (e.g.,due to a combination of factors such as rank, years of service, DOD and VA disability rank, years of service, DOD and VA disability
ratings, and the disability percentage attributable to combatratings, and the disability percentage attributable to combat) and, as such, requires independent
calculations.
. Those most likely to receive smaller benefits under CRSC due to the special rule are active-duty Those most likely to receive smaller benefits under CRSC due to the special rule are active-duty
servicemembers with a disability retirement who have significantly less than 20 years of service servicemembers with a disability retirement who have significantly less than 20 years of service
and a high VA disability rating. and a high VA disability rating.Reserve members with little active-duty time could also be
impacted.
CRSC for Reserve Retirees
When CRSC was originally enacted in 2002, it required all applicants to have at least 20 years of When CRSC was originally enacted in 2002, it required all applicants to have at least 20 years of
service creditable for computation of retired pay. As a result, reserve retirees had to have at least service creditable for computation of retired pay. As a result, reserve retirees had to have at least
7,200 reserve retirement points (which converts to 20 years of equivalent service)7,200 reserve retirement points (which converts to 20 years of equivalent service) to be eligible to be eligible
for CRSC. As noted earlier, a reservist receives a certain number of retirement points for varying for CRSC. As noted earlier, a reservist receives a certain number of retirement points for varying
levels of participation in the reserves, or active-duty military service. The 7,200-point figure levels of participation in the reserves, or active-duty military service. The 7,200-point figure
could only have been attained by a reservist who had many years of active-duty military service could only have been attained by a reservist who had many years of active-duty military service
in addition to a long reserve career. As enacted, this law effectively denied CRSC to almost all in addition to a long reserve career. As enacted, this law effectively denied CRSC to almost all
reservists.reservists.
However, a
A provision in the FY2004 NDAA revised the service requirement for reserve provision in the FY2004 NDAA revised the service requirement for reserve
component personnel. It specified that personnel who qualify for reserve retirement by having at component personnel. It specified that personnel who qualify for reserve retirement by having at
least 20 years of duty creditable for least 20 years of duty creditable for reserve retirement are eligible for CRSC. retirement are eligible for CRSC.3824 While eligible for While eligible for
CRSC, reserve retirees must be drawing retired pay (generally, at age 60) to actually receive the CRSC, reserve retirees must be drawing retired pay (generally, at age 60) to actually receive the
CRSC payment.CRSC payment.
CRSC Eligibility Summary
Essentially, all military retirees who have combat-related disabilities compensable by VA are Essentially, all military retirees who have combat-related disabilities compensable by VA are
eligible for CRSC (eligible for CRSC (seesee Figure 3)2). Military retirees with service-connected disabilities that are not . Military retirees with service-connected disabilities that are not
combat-related as defined by the statute are not eligible for CRSC, but may be eligible for CRDP, combat-related as defined by the statute are not eligible for CRSC, but may be eligible for CRDP,
as discussed below.
37 10 U.S.C. §1413a(b)(3), “Special Rules for Chapter 61 Disability Retirees.”
38 P.L. 108-136, §§641-642.
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Figure 3. CRSC Eligibility
as discussed below.
Notes: Member refers to a retired member of the Armed Forces. TERA retirees are those retired with less than refers to a retired member of the Armed Forces. TERA retirees are those retired with less than
20 years of service due to force management requirements. VA awards disability ratings in 10% increments. 20 years of service due to force management requirements. VA awards disability ratings in 10% increments. VA
pay is veteran disability compensation. is veteran disability compensation.
Concurrent Retirement and Disability Payments
The FY2004 NDAA authorized, for the first time, full concurrent receipt of retired pay and The FY2004 NDAA authorized, for the first time, full concurrent receipt of retired pay and
veteranveterans' disability compensation for retirees with at least a 50% disability, regardless of the cause disability compensation for retirees with at least a 50% disability, regardless of the cause
of disability.of disability.39 The25 The law phased in the amount of concurrent receipt amount of concurrent receipt was phased in over a 10-year period, from 2004 over a 10-year period, from 2004
to 2013, except for with regard to 100% disabled retirees, who became entitled to immediate to 2013, except for with regard to 100% disabled retirees, who became entitled to immediate
concurrent receipt effective January 1, 2005. In 2014, all offsets ended; military retirees with at concurrent receipt effective January 1, 2005. In 2014, all offsets ended; military retirees with at
least a 50% disability became eligible to receive their entire military retired pay and VA disability least a 50% disability became eligible to receive their entire military retired pay and VA disability
compensation. In compensation. InFY2021, 751,777FY2022, 800,325 retirees received CRDP.26
retirees received CRDP.40
39 P.L. 108-136, §641.
40 DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended September 30,
2021, September 2022, p. 25.
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Concurrent Receipt of Military Retired Pay and Veteran Disability
Figure 4. Current CRDP Recipients by Disability Rating
Recipients as of September 30, 2021
Source: DOD Office of the Actuary, DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30,2021, September 2022, p. 68.
2022, October 2023, p. 68. Notes: Disability retirees must have over 20 years of service to qualify for CRDP. Data Disability retirees must have over 20 years of service to qualify for CRDP. Data in this table do not include do not include621
815 individuals with an individuals with an unknown VA disability rating. VA disability rating.
A retiree cannot receive both CRSC and CRDP benefits. The retiree may choose whichever is A retiree cannot receive both CRSC and CRDP benefits. The retiree may choose whichever is
more financially advantageous and may change their election during an annual more financially advantageous and may change their election during an annual open season to to
maximize payments. There are currently maximize payments. There are currentlytwo groupssome categories of retirees who are of retirees who are not eligible for CRDP eligible for CRDP
benefits (benefits (seesee Figure 5). The first group is non-disability military4). These includeMilitary retirees with service-connected retirees with service-connected
disabilities disabilitiesthat have been rated by rated by the VA at 40% or lessVA at 40% or less. The second group comprises, including Chapter 61 Chapter 61
disability retirees with service-connected disabilities and fewer than 20 years of service.
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Figure 5. CRDP Eligibility
retirees with 20 or more years of service and 40% or less rating; andChapter 61 disability retirees with fewer than 20 years of service and any rating for service-connected disabilities.
Notes:“Member”"Member" refers to a retired member of the Armed Forces. refers to a retired member of the Armed Forces. "YOS" means "years of service." TERA retirees are those retired with less TERA retirees are those retired with less
than 20 years of service due to force management requirements. Disability ratings are awarded in 10% than 20 years of service due to force management requirements. Disability ratings are awarded in 10%
increments.increments.
CRDP for TERA Retirees
The National Defense Authorization Act for Fiscal Year 1993
The FY1993 NDAA granted temporary authority for the granted temporary authority for the
services to offer early retirements to personnel with more than 15 but services to offer early retirements to personnel with more than 15 butlessfewer than 20 years of than 20 years of
service.41 This authority was extendedservice.27 Congress extended this authority in subsequent authorization bills. in subsequent authorization bills. TERA was used The military services used TERA as a as a
force-sizing tool to entice voluntary retirements during the post–Cold War drawdown.force-sizing tool to entice voluntary retirements during the post–Cold War drawdown.
TERA retirees are eligible for CRSC and CRDP even though they have fewer than 20 years of TERA retirees are eligible for CRSC and CRDP even though they have fewer than 20 years of
service. The special rule for disability retirees (service. The special rule for disability retirees (see “see "The Special Rule for Disability Retirees”)
") does not apply to TERA retirees since TERA is not considered a disability retirement.does not apply to TERA retirees since TERA is not considered a disability retirement.
Concurrent Receipt and Blended Retirement System
Lump Sum Payments
The Blended Retirement System (BRS), effective for all servicemembers joining on or after The Blended Retirement System (BRS), effective for all servicemembers joining on or after
January 1, 2018, offers servicemembers the option to select a lump sum payment of a portion of January 1, 2018, offers servicemembers the option to select a lump sum payment of a portion of
their military retired pay in lieu of a monthly annuity.their military retired pay in lieu of a monthly annuity.4228 If a member retiring under the BRS is If a member retiring under the BRS is
eligible for CRDP and elects the lump sum payment of retired pay, the individual continues eligible for CRDP and elects the lump sum payment of retired pay, the individual continues
receiving a monthly VA disability payment. If the member electing the lump sum payment is not receiving a monthly VA disability payment. If the member electing the lump sum payment is not
eligible for CRDP (i.e., the retired pay offset applies), VA withholds disability payments until the eligible for CRDP (i.e., the retired pay offset applies), VA withholds disability payments until the
41 P.L. 102-484, §4403.
42 For more information on the BRS, see CRS Report RL34751, Military Retirement: Background and Recent
Developments, by Kristy N. Kamarck.
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sum of the amount withheld over time equals the gross amount of the lump sum payment.sum of the amount withheld over time equals the gross amount of the lump sum payment.4329 If the If the
member is eligible for CRSC, the procedures for withholding VA disability payments relate to the member is eligible for CRSC, the procedures for withholding VA disability payments relate to the
combat-related portion of the total VA entitlement.combat-related portion of the total VA entitlement.44
30 CRSC and CRDP Comparisons and Costs
CRSC and CRDP share some common elements, but are unique CRSC and CRDP share some common elements, but are uniquebenefitsbenefits. Table 1 summarizes summarizes
some of the similarities and differences between CRSC and CRDP.some of the similarities and differences between CRSC and CRDP.
Table 1. Comparison of CRSC and CRDP
CRSC
CRDP
Classification
Special compensationSpecial compensation
Military retired payMilitary retired pay
Qualified disabilitiesQualified disabilities
Combat-related disabilitiesCombat-related disabilities
Service-connected disabilitiesService-connected disabilities
Enrol ment
Must apply to parent service for Must apply to parent service for
Automatic, initiated by
verification that disability is combat-verification that disability is combat-
related
Defense Finance and
related
Accounting Service (DFAS)
Type of CompensationType of Compensation
Special compensation (not retired Special compensation (not retired
pay)
Restored retired payRestored retired pay
pay)
Tax Liability
Nontaxable
Taxable
Subject to Division with a Former SpouseSubject to Division with a Former Spouse No
Yes (longevity retired pay Yes (longevity retired pay
portion only)a
Subject to Garnishment for Alimony
Yes
Yes (longevity retired pay
and/or Child Support
portion only)
Source: Derived fromportion only)a
Source: CRS, based on DFAS chart at http://www.dfas.mil/retiredmilitary/disability/comparison.html DFAS chart at http://www.dfas.mil/retiredmilitary/disability/comparison.html.
. Note: Under 10 U.S.C. §1408, the amount of retired pay related to the individual Under 10 U.S.C. §1408, the amount of retired pay related to the individual’'s disability is not subject to s disability is not subject to
division with a former spouse or subject to alimony payments. For more information on division of retired pay division with a former spouse or subject to alimony payments. For more information on division of retired pay
with former spouses, see CRS Report RL31663, with former spouses, see CRS Report RL31663, Military Benefits for Former Spouses: Legislation and Policy Issues, by , by
Kristy N. KamarckKristy N. Kamarck.
(2021). Funding
CRDP and CRSC are funded through accrual payments to the DOD Military Retirement Fund CRDP and CRSC are funded through accrual payments to the DOD Military Retirement Fund
(MRF) established under 10 U.S.C. §1461.(MRF) established under 10 U.S.C. §1461.4531 DOD and the Department of Homeland Security (for DOD and the Department of Homeland Security (for
the Coast Guard) make contributions to the MRF through annual appropriations to account for the the Coast Guard) make contributions to the MRF through annual appropriations to account for the
cost of future retirees.cost of future retirees.4632 This contribution is a percentage of basic pay for members of the Armed This contribution is a percentage of basic pay for members of the Armed
Forces, called the Forces, called the normal cost percentage (NCP) (NCP). The U.S. Department of Treasury is responsible The U.S. Department of Treasury is responsible
for mandatory contributions to the fund to account for the unfunded liability incurred at the for mandatory contributions to the fund to account for the unfunded liability incurred at the
43 DOD, Deputy Secretary of Defense, “Implementation of the Blended Retirement System,” memorandum, January
27, 2017.
44 DOD Office of the Actuary, Statistical Report on the Military Retirement System for Fiscal Year 2017, July 2018, p.
13.
45 Although CRSC is paid from the Military Retirement Fund, it is not technically considered retired pay.
46 10 U.S.C. §1466.
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establishment of the MRF in fiscal year 1985establishment of the MRF in FY1985 and for the addition of the and for the addition of the U.S. Coast Guard to the fund Coast Guard to the fund
in fiscal year 2023.47in FY2023.33 The DOD Board of Actuaries determines the NCPs for DOD and Treasury. The DOD Board of Actuaries determines the NCPs for DOD and Treasury.48
34
In 2003, when Congress authorized concurrent receipt benefits, it specified that DODIn 2003, when Congress authorized concurrent receipt benefits, it specified that DOD’s
's contributions would be determined contributions would be determined“"without regard towithout regard to”" the concurrent receipt benefits, having the the concurrent receipt benefits, having the
practical effect of giving Treasury the responsibility for normal cost payments for concurrent practical effect of giving Treasury the responsibility for normal cost payments for concurrent
receipt benefits.receipt benefits.4935 According to the DOD Board of Actuaries, According to the DOD Board of Actuaries,
We believe the original intent of the Concurrent Receipt rules was to limit the increase in We believe the original intent of the Concurrent Receipt rules was to limit the increase in
DoD costs triggered by eliminating VA disability benefit offsets and increasing MRF
liabilities, not to transfer the majority of NCP funding responsibility to Treasury. The
current situation appears to be an unintended consequence driven by the increased VA
DoD costs triggered by eliminating VA disability benefit offsets and increasing MRF liabilities, not to transfer the majority of NCP funding responsibility to Treasury. The current situation appears to be an unintended consequence driven by the increased VA disability benefit utilization, and a potential misapplication of the Concurrent Receipt rule disability benefit utilization, and a potential misapplication of the Concurrent Receipt rule
relative to its original intent.relative to its original intent.50
36
Payments out of the fund have Payments out of the fund have been risingrisen nearly every year as a consequence of the phased every year as a consequence of the phased
implementation and a rise in the number of eligible recipients.implementation and a rise in the number of eligible recipients.5137 As of September As of September 2021, 382022, 44.8% of .8% of
all military retirees collecting retired pay were receiving either CRDP or CRSC (all military retirees collecting retired pay were receiving either CRDP or CRSC (seesee Table 2).52
38 Table 2. Number of Concurrent Pay Recipients and Estimated Annual Payments
FY2009-FY2021
CRDP
CRSC
Estimated
Estimated
Annual
Annual
% of Total Retirees
Fiscal
Number of
Payments
Number of
Payments
Receiving CRDP or
Year
Recipients
(billions)
Recipients
(billions)
CRSC
FY2021
751,777
$17.3
95,001
$1.2
38.8%
FY2020
711,219
$15.8
95,613
$1.2
36.9%
FY2019
670,611
$14.4
95,626
$1.2
35.2%
FY2018
625,765
$12.8
93,106
$1.1
35.9%
FY2017
577,399
$11.4
91,137
$1.1
33.5%
FY2016
529,117
$10.2
91,305
$1.1
31.2%
FY2015
486,632
$9.2
88,610
$1.1
29.0%
FY2014
438,455
$8.0
86,320
$1.0
26.6%
47 10 U.S.C. §1465. The National Defense Authorization Act for FY2021 (P.L. 116-283) required the Coast Guard be
added to the MRF beginning in FY2023.
48 10 U.S.C. §1465.
49 P.L. 108-136 §641; 10 U.S.C. §§1465, 1466(c)(2)(D).
50 Letter from DOD Board of Actuaries to Secretary of Defense Lloyd J. Austin III, “RE: Transferring the Cost of the
Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits,” December 2,
2022, on file with the authors.
51 The number of veterans eligible for disability pay has been increasing in part due to policy changes that have
increased outreach, improved claims processing and designated additional conditions for benefit eligibility. Increases in
VA disability claims have also been attributed to the specific types of injuries suffered by veterans of the Iraq and
Afghanistan conflicts.
52 DOD Office of the Actuary, Statistical Report on the Military Retirement System for Fiscal Year Ending September
30, 2021, September 2022.
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CRDP
CRSC
Estimated
Estimated
Annual
Annual
% of Total Retirees
Fiscal
Number of
Payments
Number of
Payments
Receiving CRDP or
Year
Recipients
(billions)
Recipients
(billions)
CRSC
FY2013
395,143
$7.0
82,929
$1.0
24.4%
FY2012
355,938
$6.1
78,379
$0.9
22.3%
FY2011
318,862
$5.2
76,358
$0.9
20.4%
FY2010
298,865
$4.6
73,890
$0.8
19.4%
FY2009
260,092
$3.9
72,549
$0.8
17.5%
Source: DOD Office of the Actuary, Statistical Reports on the Military Retirement System, DOD Office of the Actuary, Statistical Reports on the Military Retirement System, Number of Military
Retirees by State and Number of Military Retirees Receiving Concurrent Receipt by State. Data are current as of . Data are current as of
September 30 of the designated fiscal year.September 30 of the designated fiscal year.
Notes: Some retirees may be eligible for both CRSC and CRDP but can only receive one or the other. Some retirees may be eligible for both CRSC and CRDP but can only receive one or the other.
Payments are made from the DOD MRF. The phase-in period for Payments are made from the DOD MRF. The phase-in period forful full CRDP was complete on December 31, CRDP was complete on December 31,
2013.2013.
Other Compensation for Injuries or Deaths Related
to Military Service
Another way that deceased or disabled servicemembers or their families can potentially obtain Another way that deceased or disabled servicemembers or their families can potentially obtain
government compensation is by suing the government in court. However, the United States has government compensation is by suing the government in court. However, the United States has
sovereign immunity, which prevents private citizens from suing it in court unless the government , which prevents private citizens from suing it in court unless the government
consents to the suit.consents to the suit.53
39 Claims Brought by Veterans
(Unrelated to Military Service) Congress has waived the United StatesCongress has waived the United States’' sovereign immunity in certain circumstances, including sovereign immunity in certain circumstances, including
for some tort claims for injuries or deaths caused by negligent or wrongful acts of federal for some tort claims for injuries or deaths caused by negligent or wrongful acts of federal
employees.employees.5440 Subject to various exceptions and conditions, the Federal Tort Claims Act (FTCA) Subject to various exceptions and conditions, the Federal Tort Claims Act (FTCA)
of 1946 generally authorizes plaintiffs to bring civil lawsuits:of 1946 generally authorizes plaintiffs to bring civil lawsuits:
• against the United States;against the United States;
•
for money damages;for money damages;
•
for injury to or loss of property, or personal injury or death;for injury to or loss of property, or personal injury or death;
•
caused by a federal employeecaused by a federal employee’'s negligent or wrongful act or omission;s negligent or wrongful act or omission;
•
while acting within the scope of his or her office or employment;while acting within the scope of his or her office or employment;
•
under circumstances where the United States, if a private person, would be liable under circumstances where the United States, if a private person, would be liable
to the plaintiff in accordance with the law of the place where the act or omission to the plaintiff in accordance with the law of the place where the act or omission
occurred.55
53 See, for example, FDIC v. Meyer, 510 U.S. 471, 475 (1994) (“Absent a waiver, sovereign immunity shields the
Federal Government and its agencies from suit.”).
54 28 U.S.C. §§1346(b), 2671-80.
55 Ibid. For more about the FTCA, including exceptions to the general rule that are not discussed herein, see CRS
Report R45732, The Federal Tort Claims Act (FTCA): A Legal Overview.
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occurred.41The FTCA thus authorizes veterans in certain circumstances to sue the United States for the The FTCA thus authorizes veterans in certain circumstances to sue the United States for the
negligent or wrongful acts of federal employees.negligent or wrongful acts of federal employees.5642 Most relevant to the disability context, Most relevant to the disability context, such
lawsuitsthis authorization can include can include suitslawsuits involving VA medical personnel acting within the scope of their involving VA medical personnel acting within the scope of their
employment.57
employment43 but not, as discussed below, some types of lawsuits involving the veteran's military service-related activities.
While a court may award a plaintiff money damages in an FTCA suit for medical malpractice or While a court may award a plaintiff money damages in an FTCA suit for medical malpractice or
other injuries caused by VA, Congress specifically provided that such FTCA judgments would other injuries caused by VA, Congress specifically provided that such FTCA judgments would
postpone VA disability benefits related to the same injury until the amount of forestalled benefits postpone VA disability benefits related to the same injury until the amount of forestalled benefits
equaled the amount of the judgment.equaled the amount of the judgment.5844 In other words, a veteran who wins or settles a medical In other words, a veteran who wins or settles a medical
malpractice lawsuit has their VA benefits withheld in the same amount of the award.malpractice lawsuit has their VA benefits withheld in the same amount of the award.5945 For For
example, if a veteran suffered an injury at a VA hospital that resulted in a disability that entitled example, if a veteran suffered an injury at a VA hospital that resulted in a disability that entitled
her to $1,000 per month, but she also sued VA under the FTCA and was awarded $50,000 in her to $1,000 per month, but she also sued VA under the FTCA and was awarded $50,000 in
damages, her disability benefits would be withheld for four years and two months (i.e., 50 damages, her disability benefits would be withheld for four years and two months (i.e., 50
months) following that award. For very large awards, the veteran might not receive any further months) following that award. For very large awards, the veteran might not receive any further
monthly benefits because the cumulative withheld benefits would never exceed the full amount of monthly benefits because the cumulative withheld benefits would never exceed the full amount of
the award.the award.
Claims Brought by Active-Duty Servicemembers
Claims Incident to Military Service The Feres doctrine limits active-duty servicemembers’ suits against the United
States.
States for injuries arising from active military service.
Congress specifically excluded claims arising out of wartime military combatant activities from Congress specifically excluded claims arising out of wartime military combatant activities from
the FTCA,the FTCA,6046 meaning that the United States is immune from suit for compensation based on meaning that the United States is immune from suit for compensation based on
wartime active-duty servicememberswartime active-duty servicemembers’' injuries or deaths from combatant activities. injuries or deaths from combatant activities.
In 1950, the Supreme Court recognized an additional limitation on In 1950, the Supreme Court recognized an additional limitation on servicemembermilitary service-related lawsuits, lawsuits,
holding that the United States is immune from suit for injuries holding that the United States is immune from suit for injuriesto active-duty servicemembers
whenever the injuriesthat arise out of, or occur during, activities arise out of, or occur during, activities “"incident to incident to service.”61[military] service."47 Unlike the Unlike the
explicit statutory bar on lawsuits arising out of combatant activities, the bar on lawsuits arising explicit statutory bar on lawsuits arising out of combatant activities, the bar on lawsuits arising
out of military service activities is a judicially created exception to the FTCA without any explicit out of military service activities is a judicially created exception to the FTCA without any explicit
textual basis.textual basis.6248 This exception is known as the This exception is known as the Feres doctrine, named for the Supreme Court case doctrine, named for the Supreme Court case
dismissing claims brought by or on behalf of several servicemembers who sustained injuries due dismissing claims brought by or on behalf of several servicemembers who sustained injuries due
to the alleged negligence of others in the to the alleged negligence of others in thearmed forces.63Armed Forces.49 The Supreme Court has routinely declined invitations to revisit or alter the Feres doctrine,50 although at least one member of the Court routinely dissents from denials of certiorari and urges that Feres should be overruled.51
The Supreme Court has routinely
56 As discussed below, the status of active military servicemembers is different from veterans, who are no longer in
active military service. See, for example, Bush v. Secretary of Dep’t of Veterans Affairs, 2014 WL 127092, at *6 (S.D.
Ohio Jan. 13, 2014).
57 See, for example, Levin v. United States, 568 U.S. 503 (2013) (permitting a suit under the FTCA brought by a
veteran who suffered injuries as a result of cataract surgery performed by a Navy doctor at a military hospital).
58 38 U.S.C. §1151(b)(1).
59 Ibid. See also 28 U.S.C. §2672 (discussing administrative settlement of claims).
60 28 U.S.C. §2680(j).
61 Feres v. United States, 340 U.S. 135, 146 (1950).
62 The FTCA defines “employee of the government” to include “members of the military or naval forces of the United
States.” 28 U.S.C. §2671.
63 Feres, 340 U.S. at 136-37. The case involved three plaintiffs: the executrix of a servicemember who died in a
barracks fire, alleging that the government should have known the barracks was unsafe; a servicemember in whose
stomach a military surgeon allegedly left a 30-inch by 18-inch towel; and the executrix of a servicemember who
allegedly died because of negligent treatment by army surgeons. Ibid. All three claims were dismissed because of the
United States’ sovereign immunity, which the Supreme Court held that Congress had not waived. Ibid. at 146.
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declined invitations to revisit or alter the Feres doctrine,64 although at least one member of the
Court routinely dissents from denials of certiorari and urges that Feres should be overruled.65
Congress has authorized some actions that would otherwise be barred by the
Feres doctrine.
In 2019, Congress enacted a provision in the FY2020 NDAA authorizing the Secretary of In 2019, Congress enacted a provision in the FY2020 NDAA authorizing the Secretary of
Defense to allow, settle, and pay an administrative claim against the United States for personal Defense to allow, settle, and pay an administrative claim against the United States for personal
injury or death of a servicemember caused by a DOD health care providerinjury or death of a servicemember caused by a DOD health care provider’'s medical s medical
malpractice.malpractice.6655 Similar provisions had been previously introduced in both houses as the SFC Similar provisions had been previously introduced in both houses as the SFC
Richard Stayskal Military Medical Accountability Act,Richard Stayskal Military Medical Accountability Act,6756 named for a Purple Heart recipient named for a Purple Heart recipient
whose misdiagnosis while he was on active duty allegedly allowed a cancer to spread until it whose misdiagnosis while he was on active duty allegedly allowed a cancer to spread until it
became terminal.became terminal. The (Unlike the law as enacted, the standalone bills would have allowed lawsuits in federal court rather than standalone bills would have allowed lawsuits in federal court rather than
directing claims to a DOD administrative proceeding.directing claims to a DOD administrative proceeding.68
57)
The provision authorizing DOD administrative settlements, codified at 10 U.S.C. §2733a, The provision authorizing DOD administrative settlements, codified at 10 U.S.C. §2733a, thus
provides a path for relief in cases alleging medical malpractice by DOD health care providers. provides a path for relief in cases alleging medical malpractice by DOD health care providers.
Although it does not allow lawsuits in federal court (and thus does not technically alter the Although it does not allow lawsuits in federal court (and thus does not technically alter the Feres
doctrine), it does provide an avenue by which some servicemembers may receive compensation doctrine), it does provide an avenue by which some servicemembers may receive compensation
for certain injuries or disabilities—conceivably, for the same injury or disability that might entitle for certain injuries or disabilities—conceivably, for the same injury or disability that might entitle
them to disability retired pay or VA disability compensation. The DOD regulations clarify that an them to disability retired pay or VA disability compensation. The DOD regulations clarify that an
administrative medical malpractice claim administrative medical malpractice claim“"will have no effect on any other compensation the will have no effect on any other compensation the
member or family is entitled to under the comprehensive compensation system applicable to all member or family is entitled to under the comprehensive compensation system applicable to all
members,members,”" but that a claimant may but that a claimant may not “"receive duplicate compensation for the same harm.receive duplicate compensation for the same harm.”69
"58
In 2022, in the Camp Lejeune Justice Act, Congress created another path for certain medical In 2022, in the Camp Lejeune Justice Act, Congress created another path for certain medical
malpractice claims that malpractice claims thatwouldmight otherwise otherwise likely be barred by the be barred by the Feres doctrine. doctrine.7059 Under that act, Under that act,
individuals (including veterans) who were exposed to contaminated water at Marine Corps Base individuals (including veterans) who were exposed to contaminated water at Marine Corps Base
Camp Lejeune in North Carolina for at least 30 days between August 1, 1953, and December 31, Camp Lejeune in North Carolina for at least 30 days between August 1, 1953, and December 31,
1987, 1987,maywere permitted to sue the United States for harm caused by that exposure. sue the United States for harm caused by that exposure.71 Claims under this law must
be made no later than60 The act required claims to be filed by the later of August 10, 2024, or 180 days after the August 10, 2024, or 180 days after the date on which the claim isclaim was denied by denied by
the appropriate federal agencythe appropriate federal agency, whichever is later.72.61 Claims arising out of combatant activities are expressly excluded from the act.62 Relief awarded under this law is Claims arising out of combatant activities are
64 For example, Daniel v. United States, 889 F.3d 978, 982 (9th Cir. 2018), cert. denied, 139 S. Ct. 1713 (2019) (“If
ever there were a case to carve out an exception to the Feres doctrine, this is it. But only the Supreme Court has the
tools to do so.”). For more information, see CRS In Focus IF11102, Military Medical Malpractice and the Feres
Doctrine, by Bryce H. P. Mendez and Andreas Kuersten; and CRS Legal Sidebar LSB10305, The Feres Doctrine:
Congress, the Courts, and Military Servicemember Lawsuits Against the United States.
65 See, e.g., Clendening v. United States, 143 S. Ct. 11, 12 (2022) (Thomas, J., dissenting) (“As I have explained
several times, Feres should be overruled.”).
66 P.L. 116-92, §731 (codified at 10 U.S.C. §2733a).
67 S. 2451, 116th Cong. (2019); H.R. 2422, 116th Cong. (2019).
68 Ibid. The House version of the FY2020 NDAA likewise took this approach. H.R. 2500 §729, 116th Cong. (2019).
This approach was not adopted in enacted law.
69 32 C.F.R. §45.1(b).
70 P.L. 117-168; 136 Stat. 1759 (2022).
71 The U.S. District Court for the Eastern District of North Carolina has exclusive jurisdiction over these cases once the
claimant has received a disposition by the relevant federal agency. P.L. 117-168, §804(d), (h).
72 P.L. 117-168, §804(j)(2).
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expressly excluded from the act.73 Relief awarded under this law will be offset by the amount of offset by the amount of
any support for any healthcareany health care or disability benefits related to water exposure at Camp Lejeune or disability benefits related to water exposure at Camp Lejeune
received from programs administered by the Department of Veterans Affairs, Medicare, or received from programs administered by the Department of Veterans Affairs, Medicare, or
Medicaid.Medicaid.74
63 Other Options for Congress
Veteran advocacy groups continue to lobby for changes to the concurrent receipt programs that Veteran advocacy groups continue to lobby for changes to the concurrent receipt programs that
would expand benefits to a larger population of retirees. Other groups have pressed Congress to would expand benefits to a larger population of retirees. Other groups have pressed Congress to
offset or streamline duplicative benefits, contending that the dual receipt of VA and DOD offset or streamline duplicative benefits, contending that the dual receipt of VA and DOD
payments amounts to payments amounts to double-dipping, or in some cases , or in some cases triple-dipping for those veterans also for those veterans also
eligible for Social Security Disability Insurance (SSDI) from the Social Security eligible for Social Security Disability Insurance (SSDI) from the Social Security
Administration.Administration.75
64
Some of the factors that Congress might consider regarding potential changes include funding, Some of the factors that Congress might consider regarding potential changes include funding,
program efficiencies, individual eligibility requirements, and interaction with other program efficiencies, individual eligibility requirements, and interaction with other
servicemembers’servicemembers' and veterans and veterans’' benefits and programs. Below are some options to change benefits and programs. Below are some options to change
concurrent receipt programs that have been proposed or considered.concurrent receipt programs that have been proposed or considered.
Eliminate or Sunset Concurrent Receipt Programs
The Congressional Budget Office The Congressional Budget Office (CBO) has previously estimated that eliminating the CRDP would save has previously estimated that eliminating the CRDP would save
the government $139 billion between 2018 and 2026.the government $139 billion between 2018 and 2026.7665 While achieving significant cost savings, While achieving significant cost savings,
eliminating or sunsetting CRDP, CRSC, or both could be unpopular among servicemembers, eliminating or sunsetting CRDP, CRSC, or both could be unpopular among servicemembers,
veterans, and their families. Some previous efforts to reduce benefits to servicemembers have veterans, and their families. Some previous efforts to reduce benefits to servicemembers have
included a included a grandfather clause that would allow all current servicemembers and retirees to that would allow all current servicemembers and retirees to
maintain existing benefits while the law would only apply to those who joined the service after a maintain existing benefits while the law would only apply to those who joined the service after a
specific date.specific date.
Allow Concurrent Receipt for Combat-related Disabilities Only
One option could be to eliminate concurrent receipt for noncombat-related disabilities. This One option could be to eliminate concurrent receipt for noncombat-related disabilities. This
option would essentially repeal CRDP and expand CRSC to allow for any retired member to option would essentially repeal CRDP and expand CRSC to allow for any retired member to
receive concurrent DOD and VA payments, but only for the amount of the disability determined receive concurrent DOD and VA payments, but only for the amount of the disability determined
to be combat-related under existing law or other defined criteria. A member could continue to to be combat-related under existing law or other defined criteria. A member could continue to
receive VA disability payments and retired pay, but the offset would receive VA disability payments and retired pay, but the offset wouldbe appliedapply to the portion of to the portion of
VA disability compensation not related to combat. This would reduce or eliminate the concurrent VA disability compensation not related to combat. This would reduce or eliminate the concurrent
benefit for some military retirees with benefit for some military retirees withrated disabilities disabilities ofrated at 50% or greater that are not related to 50% or greater that are not related to
combat.
73 P.L. 117-168, §804(i).
74 P.L. 117-168, §804(e)(2).
75 Romina Boccia, Triple-Dipping: Thousands of Veterans Receive More than $100,000 in Benefits Every Year, The
Heritage Foundation, November 6, 2014, at https://www.heritage.org/social-security/report/triple-dipping-thousands-
veterans-receive-more-100000-benefits-every-year. For more information on SSDI benefits, see CRS Report R44948,
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI): Eligibility, Benefits, and
Financing, by William R. Morton.
76 Congressional Budget Office, Options for Reducing the Deficit: 2017 to 2026: Option 11, Eliminate Concurrent
Receipt of Retirement Pay and Disability Compensation for Disabled Veterans, Washington, DC, December 8, 2016.
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combat. Extend CRDP to All Chapter 61 Disability Retirees
As previously discussed, the FY2008 NDAA extended CRSC eligibility to Chapter 61 retirees As previously discussed, the FY2008 NDAA extended CRSC eligibility to Chapter 61 retirees
who retired due to combat-related physical disability prior to completing 20 years of service. who retired due to combat-related physical disability prior to completing 20 years of service.
However, Chapter 61 retirees with service-connected disabilities rated less than 50% or with less However, Chapter 61 retirees with service-connected disabilities rated less than 50% or with less
than 20 years of service are not eligible for CRDP. Congress could expand the CRDP provision to than 20 years of service are not eligible for CRDP. Congress could expand the CRDP provision to
include this cohort. 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.
Modify or Eliminate the Special Rule
include this cohort. Allowing for a disability retiree to receive retired pay calculated by disability (not longevity) simultaneously with VA disability calculated based on the same disability percentage could be characterized as paying for the same disability by two separate agencies (DOD and VA). Modify or Eliminate the Special Rule The The special rule affects concurrent receipt calculations for Chapter 61 disability retirees. For affects concurrent receipt calculations for Chapter 61 disability retirees. For
those whose CRSC payment is limited or eliminated by the those whose CRSC payment is limited or eliminated by the special rule, there may be a perceived , there may be a perceived
inequity between CRSC recipients with 20 or more years of service (longevity retirees) and inequity between CRSC recipients with 20 or more years of service (longevity retirees) and
Chapter 61 retirees (disability retirees who generally have less than 20 years of service).Chapter 61 retirees (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 To resolve this potential issue, Congress could modify or eliminate the special rule or limit its
application to specific military operations. Again, eliminating or modifying the special rule would application to specific military operations. Again, eliminating or modifying the special rule would
result in a situation that could be perceived as result in a situation that could be perceived as two agencies paying for the same paying for the samedisability twice, by DOD and
by VA.
disabilities. Split Compensation by Agency for Longevity and Disability
Another option would be to overhaul the military retirement and disability system whereby DOD Another option would be to overhaul the military retirement and disability system whereby DOD
would only compensate for years of service and VA would only compensate for disability, as would only compensate for years of service and VA would only compensate for disability, as
recommended by the Dole-Shalala commission in 2007.recommended by the Dole-Shalala commission in 2007.7766 This commission recommended that in This commission recommended that in
all cases DOD annuity payments should be all cases DOD annuity payments should be“"based solely on rank and length of service,based solely on rank and length of service,”" while while
VA should VA should“"assume all responsibility for establishing disability ratings and for all disability assume all responsibility for establishing disability ratings and for all disability
compensation and benefits programs.compensation and benefits programs.”78"67 Under this scenario, Chapter 61 retirees would not Under this scenario, Chapter 61 retirees would not have
eligibility to havebe eligible for DOD retired pay calculated under the disability formula. This could make the DOD retired pay calculated under the disability formula. This could make the
calculation of retired pay and disability compensation for these retirees less complex.calculation of retired pay and disability compensation for these retirees less complex.
Extend CRDP to Those with a 40% or Less VA Disability Rating
At present, those military retirees with service-connected disabilities rated at 50% or greater are At present, those military retirees with service-connected disabilities rated at 50% or greater are
eligible for CRDP. Congress could revise the concurrent receipt legislation to include the entire eligible for CRDP. Congress could revise the concurrent receipt legislation to include the entire
population of military retirees with service-connected disabilities. In 2014, CBO estimated that population of military retirees with service-connected disabilities. In 2014, CBO estimated thatto
extendextending benefits to all veterans who would be eligible for both disability benefits and military benefits to all veterans who would be eligible for both disability benefits and military
retired pay would cost $30 billion from 2015 to 2024.retired pay would cost $30 billion from 2015 to 2024.79
68 Consider Interactions with other Federal Benefits
One option for Congress might be to consider the total monetary benefits that a veteran receives One option for Congress might be to consider the total monetary benefits that a veteran receives
from the federal government. Part of the historical basis for post-service compensation from as from the federal government. Part of the historical basis for post-service compensation from as
early as the 1800s was to account for a physical disability incurred in military service or to early as the 1800s was to account for a physical disability incurred in military service or to
77 Serve, Support, Simplify: Report of the President’s Commission on Care for America’s Returning Wounded
Warriors, co-chaired by Bob Dole and Donna Shalala, July 2007.
78 Ibid.
79 Congressional Budget Office, Veterans’ Disability Compensation: Trends and Policy Options, Washington, DC,
August 2014.
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provide economic security for aged veterans.80provide economic security for aged veterans.69 In the decades since, the government has In the decades since, the government has
established several other income security programs. As noted by the Bradley Commission in established several other income security programs. As noted by the Bradley Commission in
1956, due in part to the establishment of a 1956, due in part to the establishment of asocial securitySocial Security system, system,
The basic needs of all citizens, veterans and nonveterans alike, for economic security are The basic needs of all citizens, veterans and nonveterans alike, for economic security are
being increasingly met through general Federal, State, and private programs. […] These being increasingly met through general Federal, State, and private programs. […] These
general income-maintenance expenditures […] benefit veterans and their families as well general income-maintenance expenditures […] benefit veterans and their families as well
as the general population.as the general population.
The disability benefits programs of Government agencies are expanding. Various disability The disability benefits programs of Government agencies are expanding. Various disability
programs affect veterans, but there appear to be great differences in philosophy and
purpose. There is a need for better coordination and for common standards on a
governmentwide basis.81
programs affect veterans, but there appear to be great differences in philosophy and purpose. There is a need for better coordination and for common standards on a governmentwide basis.70
Congress has, in the past, expressed concern about the sustainability of social security benefits Congress has, in the past, expressed concern about the sustainability of social security benefits
and potential overlaps in disability benefits. In 2014, in response to a congressional inquiry into and potential overlaps in disability benefits. In 2014, in response to a congressional inquiry into
the compensation received by disabled military personnel, the Government Accountability Office the compensation received by disabled military personnel, the Government Accountability Office
reported that a total of 2,304 military retirees received concurrent federal payments of $100,000 reported that a total of 2,304 military retirees received concurrent federal payments of $100,000
or more from DOD retirement, VA disability compensation, and SSDI—with one beneficiary or more from DOD retirement, VA disability compensation, and SSDI—with one beneficiary
receiving the highest total of $208,757 annually.receiving the highest total of $208,757 annually.82
71
More recently, in a 2022 report, CBO proposed options for amending VA disability benefits law More recently, in a 2022 report, CBO proposed options for amending VA disability benefits law
to reflect eligibility for other federal benefits. One such option would reduce VA disability to reflect eligibility for other federal benefits. One such option would reduce VA disability
benefits paid to veterans who are older than the full retirement age for social security. The benefits paid to veterans who are older than the full retirement age for social security. Thestated
rationale for this option was,
VA’CBO explained,
VA's disability payments are intended to compensate for the average earnings that veterans s disability payments are intended to compensate for the average earnings that veterans
would be expected to lose given the severity of their service-connected medical conditions would be expected to lose given the severity of their service-connected medical conditions
or injuries, whether or not a particular veteran’s condition actually reduced his or her
or injuries, whether or not a particular veteran's condition actually reduced his or her earnings. Disability compensation is not means-tested: Veterans who work are eligible for earnings. Disability compensation is not means-tested: Veterans who work are eligible for
benefits,benefits, and mostand most working-age veterans who receive such compensation are employed.
After veterans reach Social Security’s full retirement age, VA’s disability working-age veterans who receive such compensation are employed. After veterans reach Social Security's full retirement age, VA's disability payments payments
continue at the same level. By contrast, the income that people receive from Social Security continue at the same level. By contrast, the income that people receive from Social Security
or private pensions after they retire usually is less than their earnings from wages and salary or private pensions after they retire usually is less than their earnings from wages and salary
before retirement.before retirement.83
72
Some observers have argued that lawmakers should consider a broad Some observers have argued that lawmakers should consider a broad “"modernization of the modernization of the
disability ratings systemdisability ratings system”" including implementing means-testing in the name of fiscal including implementing means-testing in the name of fiscal
responsibility.responsibility.8473 Such an effort might consider disability compensation with respect to the Such an effort might consider disability compensation with respect to the
earnings potential of veterans in the contemporary economy. Since at least the Civil War, earning earnings potential of veterans in the contemporary economy. Since at least the Civil War, earning
capacity for the purpose of VA disability benefits was largely based on the individual’s ability to
80 DOD, "Chapter III.B.3. Disability Retired Pay," in Military Compensation Background Papers, 8th ed. (2018), p.
599.
81 Veteran's Benefits in the United States, A Report to the President by the President's Commission on Veterans's
Pensions, April 1956, p. 8, at
http://www.veteranslawlibrary.com/files/Commission_Reports/Bradley_Commission_Report1956.pdf.
82 U.S. Government Accountability Office, Disability Compensation: Review of Concurrent Receipt of Department of
Defense, GAO-14-854R, September 30, 2014, p. 4, at https://www.gao.gov/assets/gao-14-854r.pdf.
83 Congressional Budget Office, Options for Reducing the Deficit, 2023 to 2032, Volume II; Smaller Reductions,
December 7, 2022, at https://www.cbo.gov/budget-options/58654; https://www.cbo.gov/budget-options/56843.
84 Editorial Board, "Opinion; Veterans deserve support. But one benefit program deserves scrutiny," Washington Post,
April 3, 2023, at https://www.washingtonpost.com/opinions/2023/04/03/veterans-affairs-disability-payments-overdue-
update/.
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perform manual labor.85capacity for the purpose of VA disability benefits was largely based on the individual's ability to perform manual labor.74 Today, the proportion of jobs in professional, managerial, clerical, and Today, the proportion of jobs in professional, managerial, clerical, and
other primarily desk-based jobs relative to manual labor jobs in the U.S. economy has increased, other primarily desk-based jobs relative to manual labor jobs in the U.S. economy has increased,
potentially shifting estimates of earnings capacity for those with physical disabilities.potentially shifting estimates of earnings capacity for those with physical disabilities.86
75
Some veteran advocacy groups have argued that VA payments compensate for unique disabilities Some veteran advocacy groups have argued that VA payments compensate for unique disabilities
associated with the physical and mental stress of military service that affect not only employment associated with the physical and mental stress of military service that affect not only employment
opportunities and earnings potential, but also quality of life.opportunities and earnings potential, but also quality of life.8776 Congress may consider these Congress may consider these
arguments, in light of other fiscal and policy goals.arguments, in light of other fiscal and policy goals. 88
77 Modify Concurrent Receipt Normal Cost Responsibilities
Since the full phase-in of the concurrent receipt benefit, the normal costs paid by the government have increased and the share of normal costs paid by the Treasury have increased relative to DOD's contribution. The FY2024 President'The FY2024 President’s budget request included $20.7 billion in mandatory funding for accrual s budget request included $20.7 billion in mandatory funding for accrual
payments for future concurrent receipt benefitspayments for future concurrent receipt benefits—$10.1 billion (95%) more than, a significant increase over the $10.6 billion the $10.6 billion
budgeted for such payments in FY2023.budgeted for such payments in FY2023.8978 Some observers raised questions as to the cause of this substantially higher estimate for that particular fiscal year. The increase followed revised assumptions of the DOD The increase followed revised assumptions of the DOD
Board of Actuaries (the Board) in 2022 to reflect higher Board of Actuaries (the Board) in 2022 to reflect higherTreasury DepartmentDepartment of the Treasury costs for concurrent costs for concurrent
receipt accrual payments.receipt accrual payments.9079 In particular, the Board approved In particular, the Board approved athe Treasury's normal cost percentage (NCP) at nearly double its prior estimate under earlier assumptions (from 16.1% to 28.3%).80 normal cost percentage (NCP)—
the share of a servicemember’s basic pay used to determine an actuarial value of retirement
benefits to fund each year—of 28.3% for the Treasury Department to pay concurrent receipt costs
in FY2024, up from a previous estimate of 16.1%.91 The Board cited several factors as The Board cited several factors as
contributing to increasing concurrent receipt costs, including more incentive among contributing to increasing concurrent receipt costs, including more incentive among
servicemembers to apply for the benefits, broader definitions of disability and higher disability servicemembers to apply for the benefits, broader definitions of disability and higher disability
ratings by the VA, and higher incidence of combat-related disability from recent conflicts.ratings by the VA, and higher incidence of combat-related disability from recent conflicts.9281 The The
Board also noted Board also notedthe recent passagepotential impacts of the enactment of the Honoring Our PACT Act of 2022 (P.L. 117-168), of the Honoring Our PACT Act of 2022 (P.L. 117-168),
which expands VA disability benefits related to burn pits and other toxic substances, could further which expands VA disability benefits related to burn pits and other toxic substances, could further
increase these costs.increase these costs.93
85 Veteran's Benefits in the United States, A Report to the President by the President's Commission on Veterans'
Pensions, April 1956, p. 39, at
http://www.veteranslawlibrary.com/files/Commission_Reports/Bradley_Commission_Report1956.pdf.
86 Ian D. Wyatt and Daniel E. Hecker, Occupational changes during the 20th century, Bureau of Labor Statistics,
March 2006, at https://www.bls.gov/opub/mlr/2006/03/art3full.pdf.
87 “Opinion; Readers respond: Don’t touch veterans’ disability benefits,” Washington Post, April 6, 2023, at
https://www.washingtonpost.com/opinions/2023/04/06/veterans-disability-benefits-earned-compensation/; and
“Opinion; This is the true cost of America’s wars,” Washington Post, April 10, 2023, at
https://www.washingtonpost.com/opinions/2023/04/10/true-cost-america-wars-veterans/.
88 For an example of prior study on this matter, see Beth J. Asch et al., Capping Retired Pay for Senior Field Grade
Officers; Force Management, Retention, and Cost Effects, RAND Corporation, Santa Monica, CA, 2018, at
https://www.rand.org/pubs/research_reports/RR2251.html.
89 OMB, Budget of the United States Government, Fiscal Year 2024, Analytical Perspectives, Table 24-1, “Budget
Authority and Outlays by Function, Category, and Program (PDF), March 13, 2023, at
https://www.govinfo.gov/content/pkg/BUDGET-2024-PER/pdf/BUDGET-2024-PER-6-1-1.pdf. These figures exclude
additional concurrent receipt costs associated with unfunded liability payments.
90 DOD, Board of Actuaries, Minutes of the June 24, 2022, Meeting of the DoD Board of Actuaries, July 29, 2022, p.
162 of the PDF, at
https://actuary.defense.gov/Portals/15/2022%20DoD%20Board%20of%20Actuaries%20Meeting%20Minutes%20%28
Final%29.pdf. The Board is an independent advisory committee under the Federal Advisory Committee Act (FACA; 5
U.S.C. Appendix) and does not necessarily represent the views of the DOD.
91 Ibid.
92 Letter from DOD Board of Actuaries to Secretary of Defense Lloyd J. Austin III, “82
In a 2022 letter to then-Defense Secretary Lloyd Austin, the DOD Board of Actuaries noted that this upward trend in concurrent receipt eligibility has resulted in a decrease in DOD's share of the total NCPs leading to a situation where Treasury would be paying more than half of the normal cost for military pensions. In FY2025, Treasury crossed this threshold, paying 54% of the total NCP (see Table 3).83
Table 3. DOD Board of Actuaries Estimated Normal Cost Percentages for Full-time Servicemembers
As shown in Figure 5, the total NCP increased between 2005 and 2025, and this increase is mainly borne by Treasury contributions to account for concurrent receipt liabilities as required by 10 U.S.C. §1466(c)(2)(D) (see also the "Funding" section above). In 2022, the Board stated, "It does not seem appropriate that the majority of annual normal costs for service members should be funded directly from Treasury, as opposed to running through DOD's budget."84 In its 2024 report, the Board reiterated its concern that the current accounting method for concurrent receipt "obscures the true cost of MRF benefits."85 To avoid understating DOD's actual costs associated with the benefit, the Board recommended that Congress amend or reinterpret language in 10 U.S.C. §1465(c)(1) such that DOD, rather than Treasury, funds at least some portion of the normal costs for concurrent receipt. Shifting the burden of funding concurrent receipt benefits to the DOD could result in trade-offs with other DOD benefits and programs.
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27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
Letter from DOD Board of Actuaries to Secretary of Defense Lloyd J. Austin III, "RE: Transferring the Cost of the RE: Transferring the Cost of the
Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits,Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits,”" December 2, 2022, Appendix C of the DOD Board of Actuaries 2024 Report to the President and Congress, https://actuary.defense.gov/Portals/15/Quad%20Report%202024%20final.pdf.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
Editorial Board, "Opinion; Veterans deserve support. But one benefit program deserves scrutiny," Washington Post, April 3, 2023, at https://www.washingtonpost.com/opinions/2023/04/03/veterans-affairs-disability-payments-overdue-update/.
74.
75.
76.
"Opinion; Readers respond: Don't touch veterans' disability benefits," Washington Post, April 6, 2023, at https://www.washingtonpost.com/opinions/2023/04/06/veterans-disability-benefits-earned-compensation/; and "Opinion; This is the true cost of America's wars," Washington Post, April 10, 2023, at https://www.washingtonpost.com/opinions/2023/04/10/true-cost-america-wars-veterans/.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
December 2,
2022, on file with the authors.
93 Ibid. For more on the PACT Act, see CRS Report R47542, Honoring Our PACT Act of 2022 (P.L. 117-168):
Expansion of Health Care Eligibility and Toxic Exposure Screenings, by Sidath Viranga Panangala
Congressional Research Service
20
link to page 25 Concurrent Receipt of Military Retired Pay and Veteran Disability
In a December 2022 letter to the Secretary of Defense, the Board noted that this upward trend in
concurrent receipt eligibility has resulted in a decrease in DOD’s share of the total NCPs (see
Table 3).94
Table 3. DOD Board of Actuaries Estimated Normal Cost Percentages
DOD and Treasury; FY2005 and FY2024
Treasury
DOD portion
Fiscal Year
Total NCP
DOD NCP
NCP
of total NCP
2005
30.8%
27.5%
3.3%
89%
2024
58.3%
30.0%
28.3%
51%
Source: Letter from DOD Board of Actuaries to Lloyd J. Austin, Secretary of Defense, December 2, 2022.
The Board noted that if this trend continued, Treasury could soon be paying more than half of the
normal cost for military pensions. The Board stated, “It does not seem appropriate that the
majority of annual normal costs for service members should be funded directly from Treasury, as
opposed to running through DOD’s budget.”95 Essentially, the concern is that under the current
accounting method for concurrent receipt, the DOD military personnel budget does not fully
reflect the true cost of the military retirement program.
To avoid understating DOD’s actual costs associated with the benefit, the Board recommended
that Congress amend or reinterpret language in 10 U.S.C. §1465(c)(1) such that DOD, rather than
Treasury, funds at least some portion of the normal costs for concurrent receipt.96 Shifting the
burden of funding concurrent receipt benefits to the DOD could result in trade-offs with other
DOD benefits and programs.
DOD Actuary Recommendations for Congress97
The DOD Actuary made the fol owing recommendations to Congress:
•
The Board feels the appropriate way to fund NCPs would be to assign the total NCPs to DOD and
include enough funding in its annual budget to cover that cost. We understand this would require
significant changes to current law.
•
We believe the original intent of Concurrent Receipt was to protect DOD from an unexpected jump in
cost triggered by a law change beyond DOD’s control. Elimination of the VA disability benefit offset in
2004 triggered a one-time increase of the total NCP based on utilization of VA disability benefits at that
time. Increased utilization of VA disability benefits after 2004 should have no effect on NCP as these
benefits were never offset. Currently, the language, “to be determined without regard to section 1413a
or 1414 of this title,” appears to bind us to an approach that continues to decrease DoD’s NCP share.
Amending or reinterpreting the Concurrent Receipt rule to align with its original intent, shielding the
DoD budget from the one-time cost increase of 2004, would solve this issue.
94 Ibid.
95 Ibid
96 Ibid.
97 Ibid.
Congressional Research Service
21
Concurrent Receipt of Military Retired Pay and Veteran Disability
Author Information
Kristy N. Kamarck
Mainon A. Schwartz
Specialist in Military Manpower
Legislative Attorney
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.
Congressional Research Service
R40589 · VERSION 21 · UPDATED
22
Contents
- Introduction
- Military Retirement and VA Disability Compensation
- Military Retirement
- Reserve Retirement
- Disability Retirement
- Temporary Early Retirement Authority
- VA Disability Compensation
- Interaction of DOD and VA Disability Benefits
- Combat-Related Special Compensation
- CRSC for Military Disability (Chapter 61) and TERA Retirees
- The Special Rule for Disability Retirees
- CRSC for Reserve Retirees
- CRSC Eligibility Summary
- Concurrent Retirement and Disability Payments
- CRDP for TERA Retirees
- Concurrent Receipt and Blended Retirement System Lump Sum Payments
- CRSC and CRDP Comparisons and Costs
- Funding
- Other Compensation for Injuries or Deaths Related to Military Service
- Claims Brought by Veterans (Unrelated to Military Service)
- Claims Incident to Military Service
- Other Options for Congress
- Eliminate or Sunset Concurrent Receipt Programs
- Allow Concurrent Receipt for Combat-related Disabilities Only
- Extend CRDP to All Chapter 61 Disability Retirees
- Modify or Eliminate the Special Rule
- Split Compensation by Agency for Longevity and Disability
- Extend CRDP to Those with a 40% or Less VA Disability Rating
- Consider Interactions with other Federal Benefits
- Modify Concurrent Receipt Normal Cost Responsibilities
Figures
Summary
Concurrent receipt is the term used to describe the simultaneous receipt of two types of federal monetary benefits. In the military context, this often describes the simultaneous receipt of(DOD) and disability compensation from the Department of Veterans Affairs (VA). Prior to 2004, federal laws and regulations dictated that a military retiree could not receive two payments from federal agencies for the same purpose; military retired pay and VA disability compensation were considered to fall under that restriction. As a result, military retirees with physical disabilities recognized by VA had their (taxable) military retired pay offset, or reduced dollar-for-dollar, by the amount of their (nontaxable) VA compensation. Legislative activity on the issue of concurrent receipt began in the late 1980s and led to a provision for Combat-Related Special Compensation (CRSC) in the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (P.L. 107-314). Since then, Congress has added Concurrent Retirement and Disability Payments (CRDP) for those retirees with a disability rated at 50% or greater, extended concurrent receipt to additional eligible populations, and further refined and clarified the authorities for concurrent receipt benefits.
Concurrent receipt is applicable only to persons who are eligible for both (1) military retired pay and (2) VA disability compensation. An eligible retiree may not receive both CRDP and CRSC simultaneously. The retiree may choose whichever is most financially advantageous to him or her and may make benefit changes during an annual open season.
As of September 2022, about 47% (894,614) of all military retirees were receiving either CRSC or CRDP at the cost of about $21 billion annually. There are also military retirees who receive VA disability compensation that are not eligible for concurrent receipt. Determining whether to make some or all of this population eligible for concurrent receipt has been a subject of congressional debate.
Costs of concurrent receipt benefits have been increasing, which the Department of Defense (DOD) Actuary has attributed, in part, to increased incentives for servicemembers to apply for the benefits, broader definitions of disability and higher disability ratings by the VA, and higher incidence of combat-related disability from recent conflicts. DOD pays part of military retirement costs through annual contributions to the military retirement fund as part of the appropriations process, but Treasury is responsible for paying the normal costs of concurrent receipt benefits. The DOD Actuary has encouraged policymakers to revisit concurrent receipt funding rules.
Introduction
Concurrent receipt is a term used to reference the simultaneous receipt of two or more federal monetary benefits for the same period of service or qualifying event. Congress has authorized two forms of concurrent receipt for military retirees: Concurrent Retirement and Disability Payments (CRDP, under 10 U.S.C. §1414) and Combat-Related Special Compensation (CRSC, 10 U.S.C. §1413a). CRDP authorizes qualified military retirees to simultaneously receive both retired pay from the Department of Defense (DOD) and disability compensation from the Department of Veterans Affairs (VA) without offset. CRSC allows qualified military retirees with combat-related injuries to receive a "special pay" from DOD that can be received concurrently with retired pay and disability compensation. Servicemembers may receive either CRDP or CRSC, but not both. Several military and veteran service organizations have advocated for expansion of this benefit and it has been an area of interest for congressional Armed Services and Veterans Affairs committees, as well as some Member offices.
Military Retirement and VA Disability CompensationAn understanding of military An understanding of military
two benefits is helpful when discussing concurrent receipt. This section outlines these concepts.two benefits is helpful when discussing concurrent receipt. This section outlines these concepts.
Military Retirement
An active-duty servicemember typically becomes entitled to retired pay, an event frequently An active-duty servicemember typically becomes entitled to retired pay, an event frequently
referred to as referred to as vesting, upon completion of 20 years of service, regardless of age. Retirement for , upon completion of 20 years of service, regardless of age. Retirement for
longevity is typically referred to as a longevity is typically referred to as a regular or or non-disability retirement. A retired retirement. A retired
immediately paid a monthly annuity based on a percentage of their final base pay or the average immediately paid a monthly annuity based on a percentage of their final base pay or the average
2018, and 2.0% for those who entered service on or after that date.2018, and 2.0% for those who entered service on or after that date.
2 Reserve Retirement
of qualifying service, regardless of age. However, their retired pay calculation is based on a point of qualifying service, regardless of age. However, their retired pay calculation is based on a point
system that results in a number of system that results in a number of equivalent years of service. of service.
retiree does not usually begin receiving retired pay until reaching age 60.retiree does not usually begin receiving retired pay until reaching age 60.
retire from service but do not yet receive retired pay are sometimes called retire from service but do not yet receive retired pay are sometimes called gray-area retirees.retirees.
Disability Retirement
qualifying service and reserve component members at age 60, earlier eligibility is possible under qualifying service and reserve component members at age 60, earlier eligibility is possible under
some circumstances. Servicemembers found to be unfit for continued service due to physical some circumstances. Servicemembers found to be unfit for continued service due to physical
disability may be retired if the condition is permanent and stable and the disability is rated by disability may be retired if the condition is permanent and stable and the disability is rated by
DOD as 30% or greater.DOD as 30% or greater.
reference to Chapter 61 of Title 10, which covers disability retirement. As a result, some disability reference to Chapter 61 of Title 10, which covers disability retirement. As a result, some disability
retirees are retired before becoming eligible for longevity retirement while others have completed retirees are retired before becoming eligible for longevity retirement while others have completed
20 or more years of service.20 or more years of service.
their monthly retired pay:their monthly retired pay:
2018), then multiplying that result by the pay base.2018), then multiplying that result by the pay base.
the disability percentage method usually results in higher retired pay, it is most commonly the disability percentage method usually results in higher retired pay, it is most commonly
selected. Generally, military retired pay based on longevity is taxable. Retired pay computed selected. Generally, military retired pay based on longevity is taxable. Retired pay computed
related injury.related injury.
Temporary Early Retirement Authority
service are generally referred to as service are generally referred to as
Early Retirement Authority (TERA) as a force-sizing tool to entice voluntary retirements during Early Retirement Authority (TERA) as a force-sizing tool to entice voluntary retirements during
the drawdown the drawdown
retirement, but there is a retired pay reduction of 1% of the retired pay base for every year of retirement, but there is a retired pay reduction of 1% of the retired pay base for every year of
service below 20 years.service below 20 years.
VA Disability
Compensation9 For a veteran to qualify for VA disability compensation, VA must make a determination that the For a veteran to qualify for VA disability compensation, VA must make a determination that the
veteran has a current disability that is causally related to a particular injury or disease sustained in veteran has a current disability that is causally related to a particular injury or disease sustained in
or aggravated by the veteranor aggravated by the veteran
conditions that may not have been apparent during military service but which are presumed to be conditions that may not have been apparent during military service but which are presumed to be
service-connected. The VA has a scale of 11 ratings, from 0% to 100%service-connected. The VA has a scale of 11 ratings, from 0% to 100%. Each percentage rating entitles the veteran to a specific level of disability compensation, although there is no direct , although there is no direct
arithmetical relationship between the benefits paid at each step.arithmetical relationship between the benefits paid at each step.
disability retirement system, a veteran receiving VA disability compensation can ask for a medical disability retirement system, a veteran receiving VA disability compensation can ask for a medical
reexamination at any timereexamination at any time
separation or retirement from service can be examined or reexamined later. All VA disability separation or retirement from service can be examined or reexamined later. All VA disability
compensation is tax-free, which makes receipt of VA compensation desirable, even with the compensation is tax-free, which makes receipt of VA compensation desirable, even with the
operation of the offset.operation of the offset.
Interaction of DOD and VA Disability Benefits
for VA compensation any time after leaving the service and (2) have their degree of disability for VA compensation any time after leaving the service and (2) have their degree of disability
changed by VA as a result of a later medical reevaluation, as noted above. Many retirees seek changed by VA as a result of a later medical reevaluation, as noted above. Many retirees seek
benefits from VA years after retirement for a condition that was incurred during military service benefits from VA years after retirement for a condition that was incurred during military service
but that does not manifest itself until many years later. Typical examples include hearing loss, but that does not manifest itself until many years later. Typical examples include hearing loss,
some cardiovascular problems, and conditions related to exposure to Agent Orange.some cardiovascular problems, and conditions related to exposure to Agent Orange.
differences. DOD makes a determination of eligibility for disability retirement only once, at the differences. DOD makes a determination of eligibility for disability retirement only once, at the
extent to which the individual can or cannot perform military duties. Military disability retired extent to which the individual can or cannot perform military duties. Military disability retired
pay, unlike VA disability compensation, is usually taxable unless related to a combat disability.pay, unlike VA disability compensation, is usually taxable unless related to a combat disability.
rating, but these ratings will not necessarily be the same percentage. The DOD percentage is rating, but these ratings will not necessarily be the same percentage. The DOD percentage is
primarily based on fitness for duty and may result in the medical separation or disability primarily based on fitness for duty and may result in the medical separation or disability
retirement of the servicemember.retirement of the servicemember.
reflect the reflect the
upon the average impairments of earning capacity resulting from such injuries in civil upon the average impairments of earning capacity resulting from such injuries in civil
Combat-Related Special Compensation
The FY2003 NDAA,The FY2003 NDAA,
CRSC:CRSC:
force; hazardous duty such as diving, parachuting, or using dangerous materials such as force; hazardous duty such as diving, parachuting, or using dangerous materials such as
explosives; and individual and unit training and exercises and maneuvers in the field. explosives; and individual and unit training and exercises and maneuvers in the field.
Instrumentalities of war include vehicles, vessels, or devices designed primarily for military Instrumentalities of war include vehicles, vessels, or devices designed primarily for military
service, like combat vehicles, Navy ships, and military aircraft. Injuries associated with service, like combat vehicles, Navy ships, and military aircraft. Injuries associated with
instrumentalities of war may also be those associated with, for example, munitions explosions or instrumentalities of war may also be those associated with, for example, munitions explosions or
inhalation of gases or vapors in combat training.inhalation of gases or vapors in combat training.
or Space Force), and the parent service is responsible for verifying that the disability is combat-or Space Force), and the parent service is responsible for verifying that the disability is combat-
related. This process is application-driven, not automatic. CRSC payments are calculated by the related. This process is application-driven, not automatic. CRSC payments are calculated by the
amount of VA disability compensation that has been determined to be combat-related. CRSC amount of VA disability compensation that has been determined to be combat-related. CRSC
legislation does not end the requirement that the retireelegislation does not end the requirement that the retiree
amount of the total VA disability compensation the retiree receives. Instead, CRSC beneficiaries amount of the total VA disability compensation the retiree receives. Instead, CRSC beneficiaries
are to receive the financial equivalent of concurrent receipt as are to receive the financial equivalent of concurrent receipt as
statute explicitly states that CRSC is statute explicitly states that CRSC is not retired pay. retired pay.
94,289 retirees were receiving CRSC (retirees were receiving CRSC (
Figure 1. CRSC Recipients by Disability Rating
Number of recipients as of September 30, 2022
Source: DOD Office of the Actuary, DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30,
Note: Data do not include Data do not include
receive retired pay prior to completing 20 years of service.receive retired pay prior to completing 20 years of service.20 As noted earlier, these retirees are As noted earlier, these retirees are
generally referred to as Chapter 61 retirees. In addition to Chapter 61 retirees, those who generally referred to as Chapter 61 retirees. In addition to Chapter 61 retirees, those who
voluntarily retired under the TERA are also eligible for CRSC. The original CRSC legislation voluntarily retired under the TERA are also eligible for CRSC. The original CRSC legislation
excluded those active-duty members who retired with excluded those active-duty members who retired with
effective January 1, 2008.effective January 1, 2008.
or a minimum disability rating (other than the 30% DOD rating noted above for disability or a minimum disability rating (other than the 30% DOD rating noted above for disability
retirement); a 10% VA rating may qualify if it is combat-related. Eligible retirees must still apply retirement); a 10% VA rating may qualify if it is combat-related. Eligible retirees must still apply
to their parent service to validate that the disability is combat-related.to their parent service to validate that the disability is combat-related.
population except those retired under 10 U.S.C. §12731b, which allows reservists with a physical population except those retired under 10 U.S.C. §12731b, which allows reservists with a physical
disability not incurred in the line of duty to retire with between 15 and 19 creditable years of disability not incurred in the line of duty to retire with between 15 and 19 creditable years of
service.service.
22 The Special Rule for Disability Retirees
government annuities from federal agencies for the same purpose or qualifying event. When government annuities from federal agencies for the same purpose or qualifying event. When
eligible for both DOD disability retired pay and VA disability compensation.eligible for both DOD disability retired pay and VA disability compensation.
special rule caps the CRSC at the amount at which the retiree could have qualified based solely special rule caps the CRSC at the amount at which the retiree could have qualified based solely
on years of service (longevity). In some instances, the special rule could limit or eliminate the on years of service (longevity). In some instances, the special rule could limit or eliminate the
concurrent receipt payment. In other instances, application of the rule may not result in any concurrent receipt payment. In other instances, application of the rule may not result in any
changes. Each individualchanges. Each individual
ratings, and the disability percentage attributable to combatratings, and the disability percentage attributable to combat
servicemembers with a disability retirement who have significantly less than 20 years of service servicemembers with a disability retirement who have significantly less than 20 years of service
and a high VA disability rating. and a high VA disability rating.
CRSC for Reserve Retirees
When CRSC was originally enacted in 2002, it required all applicants to have at least 20 years of When CRSC was originally enacted in 2002, it required all applicants to have at least 20 years of
service creditable for computation of retired pay. As a result, reserve retirees had to have at least service creditable for computation of retired pay. As a result, reserve retirees had to have at least
7,200 reserve retirement points (which converts to 20 years of equivalent service)7,200 reserve retirement points (which converts to 20 years of equivalent service) to be eligible to be eligible
for CRSC. As noted earlier, a reservist receives a certain number of retirement points for varying for CRSC. As noted earlier, a reservist receives a certain number of retirement points for varying
levels of participation in the reserves, or active-duty military service. The 7,200-point figure levels of participation in the reserves, or active-duty military service. The 7,200-point figure
could only have been attained by a reservist who had many years of active-duty military service could only have been attained by a reservist who had many years of active-duty military service
in addition to a long reserve career. As enacted, this law effectively denied CRSC to almost all in addition to a long reserve career. As enacted, this law effectively denied CRSC to almost all
reservists.reservists.
component personnel. It specified that personnel who qualify for reserve retirement by having at component personnel. It specified that personnel who qualify for reserve retirement by having at
least 20 years of duty creditable for least 20 years of duty creditable for reserve retirement are eligible for CRSC. retirement are eligible for CRSC.
CRSC, reserve retirees must be drawing retired pay (generally, at age 60) to actually receive the CRSC, reserve retirees must be drawing retired pay (generally, at age 60) to actually receive the
CRSC payment.CRSC payment.
CRSC Eligibility Summary
Essentially, all military retirees who have combat-related disabilities compensable by VA are Essentially, all military retirees who have combat-related disabilities compensable by VA are
eligible for CRSC (eligible for CRSC (
combat-related as defined by the statute are not eligible for CRSC, but may be eligible for CRDP, combat-related as defined by the statute are not eligible for CRSC, but may be eligible for CRDP,
as discussed below.
Figure 2. CRSC Eligibility Source: CRS, Title 10 of the CRS, Title 10 of the U.S. Code..
Notes: Member refers to a retired member of the Armed Forces. TERA retirees are those retired with less than refers to a retired member of the Armed Forces. TERA retirees are those retired with less than
20 years of service due to force management requirements. VA awards disability ratings in 10% increments. 20 years of service due to force management requirements. VA awards disability ratings in 10% increments. VA
pay is veteran disability compensation. is veteran disability compensation.
The FY2004 NDAA authorized, for the first time, full concurrent receipt of retired pay and The FY2004 NDAA authorized, for the first time, full concurrent receipt of retired pay and
of disability.of disability.
to 2013, except for with regard to 100% disabled retirees, who became entitled to immediate to 2013, except for with regard to 100% disabled retirees, who became entitled to immediate
concurrent receipt effective January 1, 2005. In 2014, all offsets ended; military retirees with at concurrent receipt effective January 1, 2005. In 2014, all offsets ended; military retirees with at
least a 50% disability became eligible to receive their entire military retired pay and VA disability least a 50% disability became eligible to receive their entire military retired pay and VA disability
compensation. In compensation. In
Figure 3. Current CRDP Recipients by VA Disability Rating
Recipients as of September 30, 2022
Source: DOD Office of the Actuary, DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30,
2022, October 2023, p. 68. Notes: Disability retirees must have over 20 years of service to qualify for CRDP. Data Disability retirees must have over 20 years of service to qualify for CRDP. Data in this table do not include do not include
815 individuals with an individuals with an unknown VA disability rating. VA disability rating.
more financially advantageous and may change their election during an annual more financially advantageous and may change their election during an annual open season to to
maximize payments. There are currently maximize payments. There are currently
benefits (benefits (
disabilities disabilities
retirees with 20 or more years of service and 40% or less rating; and
Figure 4. CRDP Eligibility Source: CRS, Title 10 of the CRS, Title 10 of the U.S. Code..
Notes:
than 20 years of service due to force management requirements. Disability ratings are awarded in 10% than 20 years of service due to force management requirements. Disability ratings are awarded in 10%
increments.increments.
services to offer early retirements to personnel with more than 15 but services to offer early retirements to personnel with more than 15 but
force-sizing tool to entice voluntary retirements during the post–Cold War drawdown.force-sizing tool to entice voluntary retirements during the post–Cold War drawdown.
service. The special rule for disability retirees (service. The special rule for disability retirees (
") does not apply to TERA retirees since TERA is not considered a disability retirement.does not apply to TERA retirees since TERA is not considered a disability retirement.
Concurrent Receipt and Blended Retirement System
Lump Sum Payments
The Blended Retirement System (BRS), effective for all servicemembers joining on or after The Blended Retirement System (BRS), effective for all servicemembers joining on or after
January 1, 2018, offers servicemembers the option to select a lump sum payment of a portion of January 1, 2018, offers servicemembers the option to select a lump sum payment of a portion of
their military retired pay in lieu of a monthly annuity.their military retired pay in lieu of a monthly annuity.
eligible for CRDP and elects the lump sum payment of retired pay, the individual continues eligible for CRDP and elects the lump sum payment of retired pay, the individual continues
receiving a monthly VA disability payment. If the member electing the lump sum payment is not receiving a monthly VA disability payment. If the member electing the lump sum payment is not
eligible for CRDP (i.e., the retired pay offset applies), VA withholds disability payments until the eligible for CRDP (i.e., the retired pay offset applies), VA withholds disability payments until the
member is eligible for CRSC, the procedures for withholding VA disability payments relate to the member is eligible for CRSC, the procedures for withholding VA disability payments relate to the
combat-related portion of the total VA entitlement.combat-related portion of the total VA entitlement.
30 CRSC and CRDP Comparisons and Costs
CRSC and CRDP share some common elements, but are unique CRSC and CRDP share some common elements, but are unique
some of the similarities and differences between CRSC and CRDP.some of the similarities and differences between CRSC and CRDP.
Table 1. Comparison of CRSC and CRDP
CRSC
CRDP
Classification
Enrollment
related
Automatic, initiated by Defense Finance and Accounting Service (DFAS)
pay)
Tax Liability
Nontaxable
Taxable
No
Subject to Garnishment for Alimony and/or Child Support
Yes
Yes (longevity retired pay portion only)
. Note: Under 10 U.S.C. §1408, the amount of retired pay related to the individual Under 10 U.S.C. §1408, the amount of retired pay related to the individual
division with a former spouse or subject to alimony payments. For more information on division of retired pay division with a former spouse or subject to alimony payments. For more information on division of retired pay
with former spouses, see CRS Report RL31663, with former spouses, see CRS Report RL31663, Military Benefits for Former Spouses: Legislation and Policy Issues, by , by
Kristy N. KamarckKristy N. Kamarck
(2021). Funding
CRDP and CRSC are funded through accrual payments to the DOD Military Retirement Fund CRDP and CRSC are funded through accrual payments to the DOD Military Retirement Fund
(MRF) established under 10 U.S.C. §1461.(MRF) established under 10 U.S.C. §1461.
the Coast Guard) make contributions to the MRF through annual appropriations to account for the the Coast Guard) make contributions to the MRF through annual appropriations to account for the
cost of future retirees.cost of future retirees.
Forces, called the Forces, called the normal cost percentage (NCP) (NCP). The U.S. Department of Treasury is responsible The U.S. Department of Treasury is responsible
for mandatory contributions to the fund to account for the unfunded liability incurred at the for mandatory contributions to the fund to account for the unfunded liability incurred at the
's contributions would be determined contributions would be determined
practical effect of giving Treasury the responsibility for normal cost payments for concurrent practical effect of giving Treasury the responsibility for normal cost payments for concurrent
receipt benefits.receipt benefits.
DoD costs triggered by eliminating VA disability benefit offsets and increasing MRF liabilities, not to transfer the majority of NCP funding responsibility to Treasury. The current situation appears to be an unintended consequence driven by the increased VA disability benefit utilization, and a potential misapplication of the Concurrent Receipt rule disability benefit utilization, and a potential misapplication of the Concurrent Receipt rule
relative to its original intent.relative to its original intent.
implementation and a rise in the number of eligible recipients.implementation and a rise in the number of eligible recipients.
all military retirees collecting retired pay were receiving either CRDP or CRSC (all military retirees collecting retired pay were receiving either CRDP or CRSC (
38 Table 2. Number of Concurrent Pay Recipients and Estimated Annual Payments
FY2009-FY2022
Fiscal Year
CRDP
CRSC
Number of Recipients
Estimated Annual Payments (billions)
Number of Recipients
Estimated Annual Payments (billions)
% of Total Retirees Receiving CRDP or CRSC
FY2022
| 800,325 |
| $19 | .9 |
| 94,289 |
| $1 | .3 |
| 44 | .8% |
FY2021
| 751,777 |
| $17 | .3 |
| 95,001 |
| $1 | .2 |
| 38 | .8% |
FY2020
| 711,219 |
| $15 | .8 |
| 95,613 |
| $1 | .2 |
| 36 | .9% |
FY2019
| 670,611 |
| $14 | .4 |
| 95,626 |
| $1 | .2 |
| 35 | .2% |
FY2018
| 625,765 |
| $12 | .8 |
| 93,106 |
| $1 | .1 |
| 35 | .9% |
FY2017
| 577,399 |
| $11 | .4 |
| 91,137 |
| $1 | .1 |
| 33 | .5% |
FY2016
| 529,117 |
| $10 | .2 |
| 91,305 |
| $1 | .1 |
| 31 | .2% |
FY2015
| 486,632 |
| $9 | .2 |
| 88,610 |
| $1 | .1 |
| 29 | .0% |
FY2014
| 438,455 |
| $8 | .0 |
| 86,320 |
| $1 | .0 |
| 26 | .6% |
FY2013
| 395,143 |
| $7 | .0 |
| 82,929 |
| $1 | .0 |
| 24 | .4% |
FY2012
| 355,938 |
| $6 | .1 |
| 78,379 |
| $0 | .9 |
| 22 | .3% |
FY2011
| 318,862 |
| $5 | .2 |
| 76,358 |
| $0 | .9 |
| 20 | .4% |
FY2010
| 298,865 |
| $4 | .6 |
| 73,890 |
| $0 | .8 |
| 19 | .4% |
FY2009
| 260,092 |
| $3 | .9 |
| 72,549 |
| $0 | .8 |
| 17 | .5% |
Source: DOD Office of the Actuary, Statistical Reports on the Military Retirement System, DOD Office of the Actuary, Statistical Reports on the Military Retirement System, Number of Military
Retirees by State and Number of Military Retirees Receiving Concurrent Receipt by State. Data are current as of . Data are current as of
September 30 of the designated fiscal year.September 30 of the designated fiscal year.
Notes: Some retirees may be eligible for both CRSC and CRDP but can only receive one or the other. Some retirees may be eligible for both CRSC and CRDP but can only receive one or the other.
Payments are made from the DOD MRF. The phase-in period for Payments are made from the DOD MRF. The phase-in period for
2013.2013.
Other Compensation for Injuries or Deaths Related
to Military Service
Another way that deceased or disabled servicemembers or their families can potentially obtain Another way that deceased or disabled servicemembers or their families can potentially obtain
government compensation is by suing the government in court. However, the United States has government compensation is by suing the government in court. However, the United States has
sovereign immunity, which prevents private citizens from suing it in court unless the government , which prevents private citizens from suing it in court unless the government
consents to the suit.consents to the suit.
39 Claims Brought by Veterans
(Unrelated to Military Service) Congress has waived the United StatesCongress has waived the United States
for some tort claims for injuries or deaths caused by negligent or wrongful acts of federal for some tort claims for injuries or deaths caused by negligent or wrongful acts of federal
employees.employees.
of 1946 generally authorizes plaintiffs to bring civil lawsuits:of 1946 generally authorizes plaintiffs to bring civil lawsuits:
negligent or wrongful acts of federal employees.negligent or wrongful acts of federal employees.
other injuries caused by VA, Congress specifically provided that such FTCA judgments would other injuries caused by VA, Congress specifically provided that such FTCA judgments would
postpone VA disability benefits related to the same injury until the amount of forestalled benefits postpone VA disability benefits related to the same injury until the amount of forestalled benefits
equaled the amount of the judgment.equaled the amount of the judgment.
malpractice lawsuit has their VA benefits withheld in the same amount of the award.malpractice lawsuit has their VA benefits withheld in the same amount of the award.
example, if a veteran suffered an injury at a VA hospital that resulted in a disability that entitled example, if a veteran suffered an injury at a VA hospital that resulted in a disability that entitled
her to $1,000 per month, but she also sued VA under the FTCA and was awarded $50,000 in her to $1,000 per month, but she also sued VA under the FTCA and was awarded $50,000 in
damages, her disability benefits would be withheld for four years and two months (i.e., 50 damages, her disability benefits would be withheld for four years and two months (i.e., 50
months) following that award. For very large awards, the veteran might not receive any further months) following that award. For very large awards, the veteran might not receive any further
monthly benefits because the cumulative withheld benefits would never exceed the full amount of monthly benefits because the cumulative withheld benefits would never exceed the full amount of
the award.the award.
Claims Incident to Military Service The Feres doctrine limits
the FTCA,the FTCA,
wartime active-duty servicememberswartime active-duty servicemembers
holding that the United States is immune from suit for injuries holding that the United States is immune from suit for injuries
explicit statutory bar on lawsuits arising out of combatant activities, the bar on lawsuits arising explicit statutory bar on lawsuits arising out of combatant activities, the bar on lawsuits arising
out of military service activities is a judicially created exception to the FTCA without any explicit out of military service activities is a judicially created exception to the FTCA without any explicit
textual basis.textual basis.
dismissing claims brought by or on behalf of several servicemembers who sustained injuries due dismissing claims brought by or on behalf of several servicemembers who sustained injuries due
to the alleged negligence of others in the to the alleged negligence of others in the
Federal courts sometimes conclude that circumstances of individual cases fall outside the scope of the Feres doctrine. For example, the U.S. Court of Appeals for the Ninth Circuit determined one servicemember's alleged sexual assault by another servicemember following attendance at a civilian conference was not an injury "incident to service" and the Feres doctrine did not prohibit a lawsuit based on that injury.52 Recognizing the continued "expansive nature" of the Feres doctrine, the court engaged in extensive factual analysis before reaching its conclusion.53 The court nevertheless suggested that the existence of an "egregious intentional tort" like sexual assault may weigh heavily against applying Feres, given that such torts are fundamentally different from the types of military, mission-related negligence cases often subject to Feres analysis.54
Congress has authorized some actions that would otherwise be barred by the Feres doctrine.
Defense to allow, settle, and pay an administrative claim against the United States for personal Defense to allow, settle, and pay an administrative claim against the United States for personal
injury or death of a servicemember caused by a DOD health care providerinjury or death of a servicemember caused by a DOD health care provider
malpractice.malpractice.
Richard Stayskal Military Medical Accountability Act,Richard Stayskal Military Medical Accountability Act,
whose misdiagnosis while he was on active duty allegedly allowed a cancer to spread until it whose misdiagnosis while he was on active duty allegedly allowed a cancer to spread until it
became terminal.became terminal.
directing claims to a DOD administrative proceeding.directing claims to a DOD administrative proceeding.
provides a path for relief in cases alleging medical malpractice by DOD health care providers. provides a path for relief in cases alleging medical malpractice by DOD health care providers.
Although it does not allow lawsuits in federal court (and thus does not technically alter the Although it does not allow lawsuits in federal court (and thus does not technically alter the Feres
doctrine), it does provide an avenue by which some servicemembers may receive compensation doctrine), it does provide an avenue by which some servicemembers may receive compensation
for certain injuries or disabilities—conceivably, for the same injury or disability that might entitle for certain injuries or disabilities—conceivably, for the same injury or disability that might entitle
them to disability retired pay or VA disability compensation. The DOD regulations clarify that an them to disability retired pay or VA disability compensation. The DOD regulations clarify that an
administrative medical malpractice claim administrative medical malpractice claim
member or family is entitled to under the comprehensive compensation system applicable to all member or family is entitled to under the comprehensive compensation system applicable to all
members,members,
malpractice claims that malpractice claims that
individuals (including veterans) who were exposed to contaminated water at Marine Corps Base individuals (including veterans) who were exposed to contaminated water at Marine Corps Base
Camp Lejeune in North Carolina for at least 30 days between August 1, 1953, and December 31, Camp Lejeune in North Carolina for at least 30 days between August 1, 1953, and December 31,
1987, 1987,
the appropriate federal agencythe appropriate federal agency
received from programs administered by the Department of Veterans Affairs, Medicare, or received from programs administered by the Department of Veterans Affairs, Medicare, or
Medicaid.Medicaid.
63 Other Options for Congress
Veteran advocacy groups continue to lobby for changes to the concurrent receipt programs that Veteran advocacy groups continue to lobby for changes to the concurrent receipt programs that
would expand benefits to a larger population of retirees. Other groups have pressed Congress to would expand benefits to a larger population of retirees. Other groups have pressed Congress to
offset or streamline duplicative benefits, contending that the dual receipt of VA and DOD offset or streamline duplicative benefits, contending that the dual receipt of VA and DOD
payments amounts to payments amounts to double-dipping, or in some cases , or in some cases triple-dipping for those veterans also for those veterans also
eligible for Social Security Disability Insurance (SSDI) from the Social Security eligible for Social Security Disability Insurance (SSDI) from the Social Security
Administration.Administration.
program efficiencies, individual eligibility requirements, and interaction with other program efficiencies, individual eligibility requirements, and interaction with other
concurrent receipt programs that have been proposed or considered.concurrent receipt programs that have been proposed or considered.
Eliminate or Sunset Concurrent Receipt Programs
The Congressional Budget Office The Congressional Budget Office (CBO) has previously estimated that eliminating the CRDP would save has previously estimated that eliminating the CRDP would save
the government $139 billion between 2018 and 2026.the government $139 billion between 2018 and 2026.
eliminating or sunsetting CRDP, CRSC, or both could be unpopular among servicemembers, eliminating or sunsetting CRDP, CRSC, or both could be unpopular among servicemembers,
veterans, and their families. Some previous efforts to reduce benefits to servicemembers have veterans, and their families. Some previous efforts to reduce benefits to servicemembers have
included a included a grandfather clause that would allow all current servicemembers and retirees to that would allow all current servicemembers and retirees to
maintain existing benefits while the law would only apply to those who joined the service after a maintain existing benefits while the law would only apply to those who joined the service after a
specific date.specific date.
Allow Concurrent Receipt for Combat-related Disabilities Only
One option could be to eliminate concurrent receipt for noncombat-related disabilities. This One option could be to eliminate concurrent receipt for noncombat-related disabilities. This
option would essentially repeal CRDP and expand CRSC to allow for any retired member to option would essentially repeal CRDP and expand CRSC to allow for any retired member to
receive concurrent DOD and VA payments, but only for the amount of the disability determined receive concurrent DOD and VA payments, but only for the amount of the disability determined
to be combat-related under existing law or other defined criteria. A member could continue to to be combat-related under existing law or other defined criteria. A member could continue to
receive VA disability payments and retired pay, but the offset would receive VA disability payments and retired pay, but the offset would
VA disability compensation not related to combat. This would reduce or eliminate the concurrent VA disability compensation not related to combat. This would reduce or eliminate the concurrent
benefit for some military retirees with benefit for some military retirees with
combat. Extend CRDP to All Chapter 61 Disability Retirees
As previously discussed, the FY2008 NDAA extended CRSC eligibility to Chapter 61 retirees As previously discussed, the FY2008 NDAA extended CRSC eligibility to Chapter 61 retirees
who retired due to combat-related physical disability prior to completing 20 years of service. who retired due to combat-related physical disability prior to completing 20 years of service.
However, Chapter 61 retirees with service-connected disabilities rated less than 50% or with less However, Chapter 61 retirees with service-connected disabilities rated less than 50% or with less
than 20 years of service are not eligible for CRDP. Congress could expand the CRDP provision to than 20 years of service are not eligible for CRDP. Congress could expand the CRDP provision to
include this cohort. Allowing for a disability retiree to receive retired pay calculated by disability (not longevity) simultaneously with VA disability calculated based on the same disability percentage could be characterized as paying for the same disability by two separate agencies (DOD and VA). Modify or Eliminate the Special Rule The The special rule affects concurrent receipt calculations for Chapter 61 disability retirees. For affects concurrent receipt calculations for Chapter 61 disability retirees. For
those whose CRSC payment is limited or eliminated by the those whose CRSC payment is limited or eliminated by the special rule, there may be a perceived , there may be a perceived
inequity between CRSC recipients with 20 or more years of service (longevity retirees) and inequity between CRSC recipients with 20 or more years of service (longevity retirees) and
Chapter 61 retirees (disability retirees who generally have less than 20 years of service).Chapter 61 retirees (disability retirees who generally have less than 20 years of service).
application to specific military operations. Again, eliminating or modifying the special rule would application to specific military operations. Again, eliminating or modifying the special rule would
result in a situation that could be perceived as result in a situation that could be perceived as two agencies paying for the same paying for the same
disabilities. Split Compensation by Agency for Longevity and Disability
Another option would be to overhaul the military retirement and disability system whereby DOD Another option would be to overhaul the military retirement and disability system whereby DOD
would only compensate for years of service and VA would only compensate for disability, as would only compensate for years of service and VA would only compensate for disability, as
recommended by the Dole-Shalala commission in 2007.recommended by the Dole-Shalala commission in 2007.
all cases DOD annuity payments should be all cases DOD annuity payments should be
VA should VA should
compensation and benefits programs.compensation and benefits programs.
calculation of retired pay and disability compensation for these retirees less complex.calculation of retired pay and disability compensation for these retirees less complex.
Extend CRDP to Those with a 40% or Less VA Disability Rating
At present, those military retirees with service-connected disabilities rated at 50% or greater are At present, those military retirees with service-connected disabilities rated at 50% or greater are
eligible for CRDP. Congress could revise the concurrent receipt legislation to include the entire eligible for CRDP. Congress could revise the concurrent receipt legislation to include the entire
population of military retirees with service-connected disabilities. In 2014, CBO estimated that population of military retirees with service-connected disabilities. In 2014, CBO estimated that
retired pay would cost $30 billion from 2015 to 2024.retired pay would cost $30 billion from 2015 to 2024.
68 Consider Interactions with other Federal Benefits
One option for Congress might be to consider the total monetary benefits that a veteran receives One option for Congress might be to consider the total monetary benefits that a veteran receives
from the federal government. Part of the historical basis for post-service compensation from as from the federal government. Part of the historical basis for post-service compensation from as
early as the 1800s was to account for a physical disability incurred in military service or to early as the 1800s was to account for a physical disability incurred in military service or to
established several other income security programs. As noted by the Bradley Commission in established several other income security programs. As noted by the Bradley Commission in
1956, due in part to the establishment of a 1956, due in part to the establishment of a
being increasingly met through general Federal, State, and private programs. […] These being increasingly met through general Federal, State, and private programs. […] These
general income-maintenance expenditures […] benefit veterans and their families as well general income-maintenance expenditures […] benefit veterans and their families as well
as the general population.as the general population.
and potential overlaps in disability benefits. In 2014, in response to a congressional inquiry into and potential overlaps in disability benefits. In 2014, in response to a congressional inquiry into
the compensation received by disabled military personnel, the Government Accountability Office the compensation received by disabled military personnel, the Government Accountability Office
reported that a total of 2,304 military retirees received concurrent federal payments of $100,000 reported that a total of 2,304 military retirees received concurrent federal payments of $100,000
or more from DOD retirement, VA disability compensation, and SSDI—with one beneficiary or more from DOD retirement, VA disability compensation, and SSDI—with one beneficiary
receiving the highest total of $208,757 annually.receiving the highest total of $208,757 annually.
to reflect eligibility for other federal benefits. One such option would reduce VA disability to reflect eligibility for other federal benefits. One such option would reduce VA disability
benefits paid to veterans who are older than the full retirement age for social security. The benefits paid to veterans who are older than the full retirement age for social security. The
would be expected to lose given the severity of their service-connected medical conditions would be expected to lose given the severity of their service-connected medical conditions
or injuries, whether or not a particular veteran's condition actually reduced his or her earnings. Disability compensation is not means-tested: Veterans who work are eligible for earnings. Disability compensation is not means-tested: Veterans who work are eligible for
benefits,benefits,
continue at the same level. By contrast, the income that people receive from Social Security continue at the same level. By contrast, the income that people receive from Social Security
or private pensions after they retire usually is less than their earnings from wages and salary or private pensions after they retire usually is less than their earnings from wages and salary
before retirement.before retirement.
disability ratings systemdisability ratings system
responsibility.responsibility.
earnings potential of veterans in the contemporary economy. Since at least the Civil War, earning earnings potential of veterans in the contemporary economy. Since at least the Civil War, earning
other primarily desk-based jobs relative to manual labor jobs in the U.S. economy has increased, other primarily desk-based jobs relative to manual labor jobs in the U.S. economy has increased,
potentially shifting estimates of earnings capacity for those with physical disabilities.potentially shifting estimates of earnings capacity for those with physical disabilities.
associated with the physical and mental stress of military service that affect not only employment associated with the physical and mental stress of military service that affect not only employment
opportunities and earnings potential, but also quality of life.opportunities and earnings potential, but also quality of life.
arguments, in light of other fiscal and policy goals.arguments, in light of other fiscal and policy goals.
77 Modify Concurrent Receipt Normal Cost Responsibilities
Since the full phase-in of the concurrent receipt benefit, the normal costs paid by the government have increased and the share of normal costs paid by the Treasury have increased relative to DOD's contribution. The FY2024 President'
payments for future concurrent receipt benefitspayments for future concurrent receipt benefits
budgeted for such payments in FY2023.budgeted for such payments in FY2023.
Board of Actuaries (the Board) in 2022 to reflect higher Board of Actuaries (the Board) in 2022 to reflect higher
receipt accrual payments.receipt accrual payments.
contributing to increasing concurrent receipt costs, including more incentive among contributing to increasing concurrent receipt costs, including more incentive among
servicemembers to apply for the benefits, broader definitions of disability and higher disability servicemembers to apply for the benefits, broader definitions of disability and higher disability
ratings by the VA, and higher incidence of combat-related disability from recent conflicts.ratings by the VA, and higher incidence of combat-related disability from recent conflicts.
Board also noted Board also noted
which expands VA disability benefits related to burn pits and other toxic substances, could further which expands VA disability benefits related to burn pits and other toxic substances, could further
increase these costs.increase these costs.
DOD and Treasury; FY2005 and FY2025
|
Fiscal Year |
DOD NCP |
Treasury NCP |
Total NCP |
DOD portion of total NCP |
Treasury Portion of total NCP |
|
2005 |
27.5% |
3.3% |
30.8% |
89% |
11% |
|
2025 |
26.6% |
30.8% |
57.4% |
46% |
54% |
Source: DOD Board of Actuaries, 2024 Report to the President and Congress Regarding the Status of the Military Retirement Fund, April 2024, p. 16.
Note: The NCP is the share of a servicemember's basic pay used to determine an actuarial value of retirement benefits to contribute to the fund each year. This could be interpreted as meaning that, for every one dollar of basic pay for full-time servicemembers in FY2025, DOD needs to contribute 26.6 cents and Treasury needs to contribute 30.8 cents to fund future retiree benefits.
Figure 5. DOD and Treasury Share of Total NCPs
FY2005 and FY2025
Source: DOD Board of Actuaries, 2024 Report to the President and Congress Regarding the Status of the Military Retirement Fund, April 2024, p. 16.
|
DOD Actuary Recommendations for Congress86 The DOD Actuary made the following recommendations to Congress in 2022: The Board feels the appropriate way to fund NCPs would be to assign the total NCPs to DOD and include enough funding in its annual budget to cover that cost. We understand this would require significant changes to current law. We believe the original intent of Concurrent Receipt was to protect DOD from an unexpected jump in cost triggered by a law change beyond DOD's control. Elimination of the VA disability benefit offset in 2004 triggered a one-time increase of the total NCP based on utilization of VA disability benefits at that time. Increased utilization of VA disability benefits after 2004 should have no effect on NCP as these benefits were never offset. Currently, the language, "to be determined without regard to section 1413a or 1414 of this title," appears to bind us to an approach that continues to decrease DoD's NCP share. Amending or reinterpreting the Concurrent Receipt rule to align with its original intent, shielding the DoD budget from the one-time cost increase of 2004, would solve this issue. In its 2024 Report to the President and Congress, the Actuary continued to recommend that Congress reexamine how the MRF is funding with respect to Concurrent Receipt. |
Footnotes
See CRS Report RL34751, Military Retirement: Background and Recent Developments, by Kristy N. Kamarck (2024), for a detailed description of active-duty retirement.
See CRS Report RL34751, Military Retirement: Background and Recent Developments, by Kristy N. Kamarck (2024), and CRS Report RL30802, Reserve Component Personnel Issues: Questions and Answers, by Lawrence Kapp and Barbara Salazar Torreon (2021).
P.L. 109-163, §614 reduced the age for receipt of retired pay for reserve component members by three months for each aggregate of 90 days of certain types of active duty performed after January 28, 2008. Attempts since then to make this benefit retroactive to September 11, 2001, have not been successful.
10 U.S.C. §1201.
10 U.S.C. §1401.
Ibid.
P.L. 102-484, §4403.
For more information, see CRS Report R44837, Benefits for Service-Disabled Veterans, coordinated by Scott D. Szymendera (2022).
While most individuals who have served in the Armed Forces of the United States may be regarded as veterans, a military retiree is ordinarily someone who: (1) has completed a full active-duty military career (almost always at least 20 years of service), or who is disabled in the line of military duty and meets certain length of service and extent of disability criteria; and (2) who is eligible for retired pay and a broad range of nonmonetary benefits from DOD after retirement. A veteran is someone who has served in the Armed Forces but may not have either sufficient service or disability to be entitled to post-service retired pay and nonmonetary benefits from DOD. Generally, all military retirees are veterans, but not all veterans are military retirees. See CRS Report R42324, Who Is a "Veteran"?—Basic Eligibility for Veterans' Benefits, by Scott D. Szymendera (2016).
VA disability compensation rates are available at https://www.benefits.va.gov/compensation/rates-index.asp.
DOD, Disability Evaluation System, DODI 1332.18, November 10, 2022, p. 6, at https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/133218e.PDF?ver=hBMKOYoIHi4EotQiJbezIA%3D%3D.
38 U.S.C. §1155.
U.S. Government Accountability Office, Military Disability System; Improved Monitoring Needed to Better Track and Manage Performance, GAO-12-676, August 2012.
P.L. 107-314, §636.
P.L. 108-136, §642.
The FY2003 NDAA (P.L. 107-314) required that the disability be rated at least 60%. This requirement was repealed by the FY2004 NDAA (P.L. 108-136).
10 U.S.C. §1413a(g).
DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended September 30, 2022, October 2023, p. 68.
10 U.S.C. §1201(b). To be eligible for a disability retirement, the member must have been on active duty for more than 30 days.
P.L. 110-181, §641.
Ibid.; 10 U.S.C. §12731b.
10 U.S.C. §1413a(b)(3), "Special Rules for Chapter 61 Disability Retirees."
P.L. 108-136, §§641-642.
P.L. 108-136, §641.
DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended September 30, 2022, October 2023, p. 68.
P.L. 102-484, §4403.
For more information on the BRS, see CRS Report RL34751, Military Retirement: Background and Recent Developments, by Kristy N. Kamarck (2024).
DOD, Deputy Secretary of Defense, "Implementation of the Blended Retirement System," memorandum, January 27, 2017.
DOD Office of the Actuary, Statistical Report on the Military Retirement System for Fiscal Year Ending September 30, 2022, October 2023.
Although CRSC is paid from the Military Retirement Fund, it is not technically considered retired pay.
10 U.S.C. §1466.
10 U.S.C. §1465. The National Defense Authorization Act for FY2021 (P.L. 116-283) required the Coast Guard be added to the MRF beginning in FY2023.
10 U.S.C. §1465.
P.L. 108-136 §641; 10 U.S.C. §§1465, 1466(c)(2)(D).
Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits,Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits,
The number of veterans eligible for disability pay has increased in part due to policy changes that have increased outreach, improved claims processing and designated additional conditions for benefit eligibility. Increases in VA disability claims have also been attributed to the specific types of injuries suffered by veterans of the Iraq and Afghanistan conflicts.
DOD Office of the Actuary, Statistical Report on the Military Retirement System for Fiscal Year Ending September 30, 2022, October 2023.
See, for example, FDIC v. Meyer, 510 U.S. 471, 475 (1994) ("Absent a waiver, sovereign immunity shields the Federal Government and its agencies from suit.").
28 U.S.C. §§1346(b), 2671-80.
Ibid. For more about the FTCA, including exceptions to the general rule that are not discussed herein, see CRS Report R45732, The Federal Tort Claims Act (FTCA): A Legal Overview (2023).
As discussed below, injuries suffered by military servicemembers are different from injuries suffered by veterans who are no longer in active military service. E.g., Beck v. United States, 125 F.4th 887, 890 (8th Cir. 2025) (explaining that the court's jurisdiction over plaintiff's wrongful death claim depended on whether his accident was incident to his Air Force service); Bush v. Sec'y of the Dep't of Veterans Affs., 2014 WL 127092, at *5-6 (S.D. Ohio Jan. 13, 2014) (explaining that court lacked jurisdiction over veteran's tort claims insofar as his injuries arose from negligence of military physicians while plaintiff was an active member of the Armed Forces).
See, for example, Levin v. United States, 568 U.S. 503 (2013) (permitting a suit under the FTCA brought by a veteran who suffered injuries as a result of cataract surgery performed by a Navy doctor at a military hospital).
38 U.S.C. §1151(b)(1); 38 C.F.R. §3.362.
38 U.S.C. §1151(b). See also 28 U.S.C. §2672 (discussing administrative settlement of claims).
28 U.S.C. §2680(j).
Feres v. United States, 340 U.S. 135, 146 (1950).
The FTCA defines "employee of the government" to include "members of the military or naval forces of the United States." 28 U.S.C. §2671.
Feres, 340 U.S. at 136-37. The case involved three plaintiffs: the executrix of a servicemember who died in a barracks fire, alleging that the government should have known the barracks was unsafe; a servicemember in whose stomach a military surgeon allegedly left a 30-inch by 18-inch towel; and the executrix of a servicemember who allegedly died because of negligent treatment by army surgeons. Ibid. All three claims were dismissed because of the United States' sovereign immunity, which the Supreme Court held that Congress had not waived. Ibid. at 146.
For example, Daniel v. United States, 889 F.3d 978, 982 (9th Cir. 2018) ("If ever there were a case to carve out an exception to the Feres doctrine, this is it. But only the Supreme Court has the tools to do so."). For more information, see CRS In Focus IF11102, Military Medical Malpractice and the Feres Doctrine, by Bryce H. P. Mendez and Andreas Kuersten (2023); and CRS Legal Sidebar LSB10305, The Feres Doctrine: Congress, the Courts, and Military Servicemember Lawsuits Against the United States, by Andreas Kuersten (2023).
See, e.g., Carter v. United States, 145 S. Ct. 519, 526 (2025) (Thomas, J., dissenting) ("I hope that this Court will one day overrule Feres. Until then, I offer this advice to lower courts: Do not look for a principled explanation for our Feres case law; there is nothing to find."); Clendening v. United States, 143 S. Ct. 11, 12 (2022) (Thomas, J., dissenting) ("As I have explained several times, Feres should be overruled.").
Spletstoser v. Hyten, 44 F.4th 938, 958 (9th Cir. 2022).
Id.
Id.
P.L. 116-92, §731 (codified at 10 U.S.C. §2733a).
Ibid. The House version of the FY2020 NDAA likewise took this approach. H.R. 2500 §729, 116th Cong. (2019). This approach was not adopted in enacted law.
32 C.F.R. §45.1(b).
P.L. 117-168; 136 Stat. 1759 (2022).
The U.S. District Court for the Eastern District of North Carolina has exclusive jurisdiction over these cases once the claimant has received a disposition by the relevant federal agency. P.L. 117-168, §804(d), (h).
P.L. 117-168, §804(j)(2).
P.L. 117-168, §804(i).
P.L. 117-168, §804(e)(2).
Romina Boccia, Triple-Dipping: Thousands of Veterans Receive More than $100,000 in Benefits Every Year, The Heritage Foundation, November 6, 2014, at https://www.heritage.org/social-security/report/triple-dipping-thousands-veterans-receive-more-100000-benefits-every-year. For more information on SSDI benefits, see CRS Report R44948, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI): Eligibility, Benefits, and Financing, by William R. Morton (2018).
CBO, Options for Reducing the Deficit: 2017 to 2026: Option 11, Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation for Disabled Veterans, Washington, DC, December 8, 2016.
Serve, Support, Simplify: Report of the President's Commission on Care for America's Returning Wounded Warriors, co-chaired by Bob Dole and Donna Shalala, July 2007.
Serve, Support, Simplify: Report of the President's Commission on Care for America's Returning Wounded Warriors, co-chaired by Bob Dole and Donna Shalala, July 2007.
CBO, Veterans' Disability Compensation: Trends and Policy Options, Washington, DC, August 2014.
DOD, "Chapter III.B.3. Disability Retired Pay," in Military Compensation Background Papers, 8th ed. (2018), p. 599.
Veteran's Benefits in the United States, A Report to the President by the President's Commission on Veterans's Pensions, April 1956, p. 8, at http://www.veteranslawlibrary.com/files/Commission_Reports/Bradley_Commission_Report1956.pdf.
U.S. Government Accountability Office, Disability Compensation: Review of Concurrent Receipt of Department of Defense, GAO-14-854R, September 30, 2014, p. 4, at https://www.gao.gov/assets/gao-14-854r.pdf.
CBO, Options for Reducing the Deficit, 2023 to 2032, Volume II; Smaller Reductions, December 7, 2022, at https://www.cbo.gov/budget-options/58654; https://www.cbo.gov/budget-options/56843.
Veteran's Benefits in the United States, A Report to the President by the President's Commission on Veterans' Pensions, April 1956, p. 39, at http://www.veteranslawlibrary.com/files/Commission_Reports/Bradley_Commission_Report1956.pdf.
Ian D. Wyatt and Daniel E. Hecker, Occupational changes during the 20th century, Bureau of Labor Statistics, March 2006, at https://www.bls.gov/opub/mlr/2006/03/art3full.pdf.
For an example of prior study on this matter, see Beth J. Asch et al., Capping Retired Pay for Senior Field Grade Officers; Force Management, Retention, and Cost Effects, RAND Corporation, Santa Monica, CA, 2018, at https://www.rand.org/pubs/research_reports/RR2251.html.
OMB, Budget of the United States Government, Fiscal Year 2024, Analytical Perspectives, Table 24-1, "Budget Authority and Outlays by Function, Category, and Program (PDF), March 13, 2023, at https://www.govinfo.gov/content/pkg/BUDGET-2024-PER/pdf/BUDGET-2024-PER-6-1-1.pdf. These figures exclude additional concurrent receipt costs associated with unfunded liability payments.
DOD, Board of Actuaries, Minutes of the June 24, 2022, Meeting of the DoD Board of Actuaries, July 29, 2022, p. 162 of the PDF, at https://actuary.defense.gov/Portals/15/2022%20DoD%20Board%20of%20Actuaries%20Meeting%20Minutes%20%28Final%29.pdf. The Board is an independent advisory committee under the Federal Advisory Committee Act (FACA; 5 U.S.C. Appendix) and does not necessarily represent the views of the DOD.
Ibid, p. 11.
Letter from DOD Board of Actuaries to Secretary of Defense Lloyd J. Austin III, "RE: Transferring the Cost of the Military Retirement Fund (MFR) from DoD to Treasury Due to Increasing Concurrent Receipt Benefits," December 2, 2022, included as an appendix to the DOD Board of Actuaries, 2024 Report to the President and Congress Regarding the Status of the Military Retirement Fund.
Ibid. For more on the PACT Act, see CRS Report R47542, Honoring Our PACT Act of 2022 (P.L. 117-168): Expansion of Health Care Eligibility and Toxic Exposure Screenings, by Sidath Viranga Panangala (2024).
DOD Board of Actuaries, 2024 Report to the President and Congress Regarding the Status of the Military Retirement Fund, April 2024, at https://actuary.defense.gov/Portals/15/Quad%20Report%202024%20final.pdf.
DOD Board of Actuaries, 2024 Report to the President and Congress, pdf p. 37.
DOD Board of Actuaries, 2024 Report to the President and Congress, pdf p. 18.
DOD Board of Actuaries, 2024 Report to the President and Congress, pdf p. 19.