Concurrent Receipt of Military Retired Pay and Veteran Disability: Background and Issues for Congress

May 21, 2009 – June 22, 2023 R40589

Concurrent Receipt of Military Retired Pay and June 22, 2023
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.

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
(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.
Congressional Research Service

1

Concurrent Receipt of Military Retired Pay and Veteran Disability

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.
Military Retirement and VA Disability
Compensation
An understanding of military retirement, VA disability compensation, and the interaction of these
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
referred to as vesting, upon completion of 20 years of service, regardless of age. Retirement for
longevity is typically referred to as a regular or non-disability retirement. A retired member is
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.
Congressional Research Service

2

Concurrent Receipt of Military Retired Pay and Veteran Disability

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.13
Reserve Retirement
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
system that results in a number of equivalent years of service.14 In addition, a reserve component
retiree does not usually begin receiving retired pay until reaching age 60.15 Those reservists who
retire from service but do not yet receive retired pay are sometimes called gray-area retirees.
Disability Retirement
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
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
DOD as 30% or greater.16 These retirees are generally referred to as Chapter 61 retirees, a
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
20 or more years of service.
A servicemember retired for disability may select one of two available options for calculating
their monthly retired pay:
1. Longevity Formula. 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,
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. Disability Formula. Retired pay is computed by multiplying the DOD disability
percentage by the pay base.17

𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑅𝑒𝑡𝑖𝑟𝑒𝑑 𝑃𝑎𝑦 = (𝑑𝑖𝑠𝑎𝑏𝑖𝑙𝑖𝑡𝑦 %) 𝑥 (𝑝𝑎𝑦 𝑏𝑎𝑠𝑒)

The maximum disability percentage that can be used under the disability formula is 75%.18 Since
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

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.
Congressional Research Service

3

Concurrent Receipt of Military Retired Pay and Veteran Disability

under the disability formula is also fully taxed unless the disability is the result of a combat-
related injury.
Temporary Early Retirement Authority
Personnel retired due to force management requirements and before completing 20 years of
service are generally referred to as “TERA retirees” because the FY1993 granted Temporary
Early Retirement Authority (TERA) as a force-sizing tool to entice voluntary retirements during
the drawdown of the early 1990s.19 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
service below 20 years.
VA Disability Compensation20
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
or aggravated by the veteran’s service in the Armed Forces.21 Some exceptions exist for certain
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%, although there is no direct
arithmetical relationship between the benefits paid at each step. Each percentage rating entitles
the veteran to a specific level of disability compensation.22 In a major difference from the DOD
disability retirement system, a veteran receiving VA disability compensation can ask for a medical
reexamination at any time; a veteran who does not receive disability compensation upon
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
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
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
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,
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
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.
Congressional Research Service

4

Concurrent Receipt of Military Retired Pay and Veteran Disability

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
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
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
retirement of the servicemember.23 The VA disability rating, on the other hand, is designed to
reflect the “reductions in earning capacity,” and the “ratings shall be based, as far as practicable,
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 new 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.
Congressional Research Service

5

link to page 11 Concurrent Receipt of Military Retired Pay and Veteran Disability

Combat-Related Special Compensation
The FY2003 NDAA,30 as amended by the FY2004 NDAA,31 authorized CRSC. Military retirees
with at least 20 years of service and who meet either of the following two criteria are eligible for
CRSC:
• A disability that is “attributable to an injury for which the member was awarded
the Purple Heart,” and is not rated as less than a 10% disability by VA; or
• A disability rating resulting from involvement in “armed conflict,” “hazardous
service,” “duty simulating war,” or “through an instrumentality of war.”32
This definition of combat-related encompasses disabilities associated with any kind of hostile
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.
Instrumentalities of war include vehicles, vessels, or devices designed primarily for military
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
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,
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
amount of VA disability compensation that has been determined to be combat-related. CRSC
legislation does not end the requirement that the retiree’s military retired pay be reduced by the
amount of the total VA disability compensation the retiree receives. Instead, CRSC beneficiaries
are to receive the financial equivalent of concurrent receipt as “special compensation.” The
statute explicitly states that CRSC is not retired pay.33 As of September 2021, a total of 95,001
retirees were receiving CRSC (see Figure 2).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.
Congressional Research Service

6

Concurrent Receipt of Military Retired Pay and Veteran Disability

Figure 2. Current CRSC Recipients by Disability Rating
Number of recipients as of September 30, 2021

Source: DOD Office of the Actuary, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30, 2021, September 2022 p. 68.
Note: Data do not include 40 individuals with an unknown VA disability rating.
CRSC for Military Disability (Chapter 61) and TERA Retirees
Servicemembers with a permanent DOD disability rating of 30% or greater may be retired and
receive retired pay prior to completing 20 years of service. As noted earlier, these retirees are
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
excluded those active-duty members who retired with less than 20 years of service.
The FY2008 NDAA expanded CRSC to include Chapter 61 and active-duty TERA retirees
effective January 1, 2008.35 Eligibility no longer requires a minimum number of years of service
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
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
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
service.36
The Special Rule for Disability Retirees
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

35 P.L. 110-181, §641.
36 Ibid.; 10 U.S.C. §12731b.
Congressional Research Service

7

link to page 13 Concurrent Receipt of Military Retired Pay and Veteran Disability

authorizing CRSC, Congress created a special rule for Chapter 61 disability retirees who may be
eligible for both DOD disability retired pay and VA disability compensation.37 Application of the
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
concurrent receipt payment. In other instances, application of the rule may not result in any
changes. Each individual’s situation is unique (e.g., rank, years of service, DOD and VA disability
ratings, 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
servicemembers with a disability retirement who have significantly less than 20 years of service
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
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) to be eligible
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
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
reservists.
However, a 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
least 20 years of duty creditable for reserve retirement are eligible for CRSC.38 While eligible for
CRSC, reserve retirees must be drawing retired pay (generally, at age 60) to actually receive the
CRSC payment.
CRSC Eligibility Summary
Essentially, all military retirees who have combat-related disabilities compensable by VA are
eligible for CRSC (see Figure 3). 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,
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.
Congressional Research Service

8

Concurrent Receipt of Military Retired Pay and Veteran Disability

Figure 3. CRSC Eligibility

Source: 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
20 years of service due to force management requirements. VA awards disability ratings in 10% increments. VA
pay is veteran disability compensation.
Concurrent Retirement and Disability Payments
The FY2004 NDAA authorized, for the first time, full concurrent receipt of retired pay and
veteran disability compensation for retirees with at least a 50% disability, regardless of the cause
of disability.39 The amount of concurrent receipt was phased in over a 10-year period, from 2004
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
least a 50% disability became eligible to receive their entire military retired pay and VA disability
compensation. In FY2021, 751,777 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.
Congressional Research Service

9

link to page 15

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, Statistical Report on the Military Retirement System: Fiscal Year Ended
September 30, 2021, September 2022, p. 68.
Notes: Disability retirees must have over 20 years of service to qualify for CRDP. Data do not include 621
individuals with an unknown VA disability rating.
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 open season to
maximize payments. There are currently two groups of retirees who are not eligible for CRDP
benefits (see Figure 5). The first group is non-disability military retirees with service-connected
disabilities that have been rated by VA at 40% or less. The second group comprises Chapter 61
disability retirees with service-connected disabilities and fewer than 20 years of service.
Congressional Research Service

10

link to page 11

Concurrent Receipt of Military Retired Pay and Veteran Disability

Figure 5. CRDP Eligibility

Source: 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 20 years of service due to force management requirements. Disability ratings are awarded in 10%
increments.
CRDP for TERA Retirees
The National Defense Authorization Act for Fiscal Year 1993 granted temporary authority for the
services to offer early retirements to personnel with more than 15 but less than 20 years of
service.41 This authority was extended in subsequent authorization bills. TERA was used as a
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
service. The special rule for disability retirees (see “The Special Rule for Disability Retirees”)
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
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.42 If a member retiring under the BRS is
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
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.
Congressional Research Service

11

link to page 16 Concurrent Receipt of Military Retired Pay and Veteran Disability

sum of the amount withheld over time equals the gross amount of the lump sum payment.43 If the
member is eligible for CRSC, the procedures for withholding VA disability payments relate to the
combat-related portion of the total VA entitlement.44
CRSC and CRDP Comparisons and Costs
CRSC and CRDP share some common elements, but are unique benefits. Table 1 summarizes
some of the similarities and differences between CRSC and CRDP.
Table 1. Comparison of CRSC and CRDP

CRSC
CRDP
Classification
Special compensation
Military retired pay
Qualified disabilities
Combat-related disabilities
Service-connected disabilities
Enrol ment
Must apply to parent service for
Automatic, initiated by
verification that disability is combat-
Defense Finance and
related
Accounting Service (DFAS)
Type of Compensation
Special compensation (not retired
Restored retired pay
pay)
Tax Liability
Nontaxable
Taxable
Subject to Division with a Former Spouse No
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 from 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’s disability is not subject to
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, Military Benefits for Former Spouses: Legislation and Policy Issues, by
Kristy N. Kamarck.
Funding
CRDP and CRSC are funded through accrual payments to the DOD Military Retirement Fund
(MRF) established under 10 U.S.C. §1461.45 DOD and the Department of Homeland Security (for
the Coast Guard) make contributions to the MRF through annual appropriations to account for the
cost of future retirees.46 This contribution is a percentage of basic pay for members of the Armed
Forces, called the normal cost percentage (NCP). The U.S. Department of Treasury is responsible
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.
Congressional Research Service

12

link to page 17 Concurrent Receipt of Military Retired Pay and Veteran Disability

establishment of the MRF in fiscal year 1985 and for the addition of the Coast Guard to the fund
in fiscal year 2023.47 The DOD Board of Actuaries determines the NCPs for DOD and Treasury.48
In 2003, when Congress authorized concurrent receipt benefits, it specified that DOD’s
contributions would be determined “without regard to” the concurrent receipt benefits, having the
practical effect of giving Treasury the responsibility for normal cost payments for concurrent
receipt benefits.49 According to the DOD Board of Actuaries,
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
disability benefit utilization, and a potential misapplication of the Concurrent Receipt rule
relative to its original intent.50
Payments out of the fund have been rising every year as a consequence of the phased
implementation and a rise in the number of eligible recipients.51 As of September 2021, 38.8% of
all military retirees collecting retired pay were receiving either CRDP or CRSC (see Table 2).52
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.
Congressional Research Service

13

Concurrent Receipt of Military Retired Pay and Veteran Disability

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, Number of Military
Retirees by State and Number of Military Retirees Receiving Concurrent Receipt by State. Data are current as of
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.
Payments are made from the DOD MRF. The phase-in period for ful CRDP was complete on December 31,
2013.
Other Compensation for Injuries or Deaths Related
to Military Service
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
sovereign immunity, which prevents private citizens from suing it in court unless the government
consents to the suit.53
Claims Brought by Veterans
Congress has waived the United States’ sovereign immunity in certain circumstances, including
for some tort claims for injuries or deaths caused by negligent or wrongful acts of federal
employees.54 Subject to various exceptions and conditions, the Federal Tort Claims Act (FTCA)
of 1946 generally authorizes plaintiffs to bring civil lawsuits:
• against the United States;
• for money damages;
• for injury to or loss of property, or personal injury or death;
• caused by a federal employee’s negligent or wrongful act or omission;
• 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
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.
Congressional Research Service

14

Concurrent Receipt of Military Retired Pay and Veteran Disability

The FTCA thus authorizes veterans in certain circumstances to sue the United States for the
negligent or wrongful acts of federal employees.56 Most relevant to the disability context, such
lawsuits can include suits involving VA medical personnel acting within the scope of their
employment.57
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
postpone VA disability benefits related to the same injury until the amount of forestalled benefits
equaled the amount of the judgment.58 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.59 For
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
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
monthly benefits because the cumulative withheld benefits would never exceed the full amount of
the award.
Claims Brought by Active-Duty Servicemembers
The Feres doctrine limits active-duty servicemembers’ suits against the United
States.
Congress specifically excluded claims arising out of wartime military combatant activities from
the FTCA,60 meaning that the United States is immune from suit for compensation based on
wartime active-duty servicemembers’ injuries or deaths from combatant activities.
In 1950, the Supreme Court recognized an additional limitation on servicemember lawsuits,
holding that the United States is immune from suit for injuries to active-duty servicemembers
whenever the injuries arise out of, or occur during, activities “incident to service.”61 Unlike the
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
textual basis.62 This exception is known as the Feres doctrine, named for the Supreme Court case
dismissing claims brought by or on behalf of several servicemembers who sustained injuries due
to the alleged negligence of others in the armed forces.63 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.
Congressional Research Service

15

Concurrent Receipt of Military Retired Pay and Veteran Disability

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
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 provider’s medical
malpractice.66 Similar provisions had been previously introduced in both houses as the SFC
Richard Stayskal Military Medical Accountability Act,67 named for a Purple Heart recipient
whose misdiagnosis while he was on active duty allegedly allowed a cancer to spread until it
became terminal. The standalone bills would have allowed lawsuits in federal court rather than
directing claims to a DOD administrative proceeding.68
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.
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
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
administrative medical malpractice claim “will have no effect on any other compensation the
member or family is entitled to under the comprehensive compensation system applicable to all
members,” but that a claimant may not “receive duplicate compensation for the same harm.”69

In 2022, in the Camp Lejeune Justice Act, Congress created another path for certain medical
malpractice claims that would otherwise likely be barred by the Feres doctrine.70 Under that act,
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,
1987, may sue the United States for harm caused by that exposure.71 Claims under this law must
be made no later than August 10, 2024, or 180 days after the date on which the claim is denied by
the appropriate federal agency, whichever is later.72 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).
Congressional Research Service

16

Concurrent Receipt of Military Retired Pay and Veteran Disability

expressly excluded from the act.73 Relief awarded under this law will be offset by the amount of
any support for any healthcare or disability benefits related to water exposure at Camp Lejeune
received from programs administered by the Department of Veterans Affairs, Medicare, or
Medicaid.74
Other Options for Congress
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
offset or streamline duplicative benefits, contending that the dual receipt of VA and DOD
payments amounts to double-dipping, or in some cases triple-dipping for those veterans also
eligible for Social Security Disability Insurance (SSDI) from the Social Security
Administration.75
Some of the factors that Congress might consider regarding potential changes include funding,
program efficiencies, individual eligibility requirements, and interaction with other
servicemembers’ and veterans’ benefits and programs. Below are some options to change
concurrent receipt programs that have been proposed or considered.
Eliminate or Sunset Concurrent Receipt Programs
The Congressional Budget Office has previously estimated that eliminating the CRDP would save
the government $139 billion between 2018 and 2026.76 While achieving significant cost savings,
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
included a grandfather clause 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
specific date.
Allow Concurrent Receipt for Combat-related Disabilities Only
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
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
receive VA disability payments and retired pay, but the offset would be applied to the portion of
VA disability compensation not related to combat. This would reduce or eliminate the concurrent
benefit for some military retirees with rated disabilities of 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.
Congressional Research Service

17

Concurrent Receipt of Military Retired Pay and Veteran Disability

Extend CRDP to All Chapter 61 Disability 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.
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
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
The special rule affects concurrent receipt calculations for Chapter 61 disability retirees. For
those whose CRSC payment is limited or eliminated by the special rule, there may be a perceived
inequity between CRSC recipients with 20 or more years of service (longevity retirees) and
Chapter 61 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
application to specific military operations. Again, eliminating or modifying the special rule would
result in a situation that could be perceived as paying for the same disability twice, by DOD and
by VA.
Split Compensation by Agency for Longevity and Disability
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
recommended by the Dole-Shalala commission in 2007.77 This commission recommended that in
all cases DOD annuity payments should be “based solely on rank and length of service,” while
VA should “assume all responsibility for establishing disability ratings and for all disability
compensation and benefits programs.”78 Under this scenario, Chapter 61 retirees would not have
eligibility to have DOD retired pay calculated under the disability formula. This could make the
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
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 to
extend benefits to all veterans who would be eligible for both disability benefits and military
retired pay would cost $30 billion from 2015 to 2024.79
Consider Interactions with other Federal Benefits
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
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.
Congressional Research Service

18

Concurrent Receipt of Military Retired Pay and Veteran Disability

provide economic security for aged veterans.80 In the decades since, the government has
established several other income security programs. As noted by the Bradley Commission in
1956, due in part to the establishment of a social security system,
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
general income-maintenance expenditures […] benefit veterans and their families as well
as the general population.
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
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
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
or more from DOD retirement, VA disability compensation, and SSDI—with one beneficiary
receiving the highest total of $208,757 annually.82
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
benefits paid to veterans who are older than the full retirement age for social security. The stated
rationale for this option was,
VA’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
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
benefits, and most working-age veterans who receive such compensation are employed.
After veterans reach Social Security’s full retirement age, VA’s disability payments
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
before retirement.83
Some observers have argued that lawmakers should consider a broad “modernization of the
disability ratings system” including implementing means-testing in the name of fiscal
responsibility.84 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
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/.
Congressional Research Service

19

Concurrent Receipt of Military Retired Pay and Veteran Disability

perform manual labor.85 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,
potentially shifting estimates of earnings capacity for those with physical disabilities.86
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
opportunities and earnings potential, but also quality of life.87 Congress may consider these
arguments, in light of other fiscal and policy goals. 88
Modify Concurrent Receipt Normal Cost Responsibilities
The FY2024 President’s budget request included $20.7 billion in mandatory funding for accrual
payments for future concurrent receipt benefits—$10.1 billion (95%) more than the $10.6 billion
budgeted for such payments in FY2023.89 The increase followed revised assumptions of the DOD
Board of Actuaries (the Board) in 2022 to reflect higher Treasury Department costs for concurrent
receipt accrual payments.90 In particular, the Board approved a 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
contributing to increasing concurrent receipt costs, including more incentive among
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.92 The
Board also noted the recent passage 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
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, “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.
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

Download PDF

Download EPUB

Revision History

Jun. 22, 2023

HTML · PDF

56% changed

Mar. 25, 2020

HTML · PDF

11% changed

Jan. 17, 2019

HTML · PDF

8% changed