VA Disability Compensation and military retired pay

Mar 10

Generally, military retirees can not receive both VA disability compensation and military retired pay. Rather, in order to receive VA disability compensation they must waive an equal amount of their retired pay. However, some retirees may qualify for Concurrent Retirement and Disability Pay (CRDP), which allows them to receive both.

If you are a military retiree with a VA disability rating, understanding CRDP can help you determine whether you may be entitled to restored retired pay.

Who Qualifies for CRDP?

You may qualify for CRDP if:

You are entitled to military retired pay
You are entitled to VA disability compensation
You have a VA disability rating of 50% or higher

Retirees who did not retire under chapter 61 for disability

If you are a regular military retiree and did not retire under Chapter 61 disability retirement rules, you may be eligible for CRDP once you meet the requirements above.

retirees under Chapter 61 for Disability

If you retired under Chapter 61 for disability, the rules are more limited. You generally must also have:

20 or more years of creditable service,
Be entitled for any month to both military disability retired pay and VA Disability Compensation, and
At least a 50 percent VA disability rating

If you are a Chapter 61 retiree without 20 years of creditable service, you generally remain subject to the offset between retired pay and VA compensation.

Do You Need to Apply for CRDP?

In most cases, no separate application is required.

DFAS typically performs an audit when it receives notice of your VA disability award and will determine whether you qualify for CRDP. If you are eligible, the adjustment is usually made automatically.

Still, it is a good idea to review your retired pay statements and VA award information carefully to make sure the numbers are correct.

Why CRDP Matters

For many veterans, CRDP can make a major difference in monthly income. A retiree who qualifies may be able to recover retired pay that would otherwise be offset by VA disability compensation.

Jack Talton