Concurrent Retirement and Disability Pay (CRDP)
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Receiving Both DoD Money and VA Money
Concurrent Retirement and Disability Pay (CRDP)
Receiving Both DoD Money and VA Money
Concurrent Retirement and Disability Pay (CRDP) is a benefit that allows veterans who qualify to receive benefit money from both the DoD and the VA (known as “dual compensation”).
Generally, veterans cannot receive monthly monetary Military Disability Benefits from both the VA and the DoD. Instead, any money a veteran receives for VA Disability is subtracted from the money they get for DoD Disability or DoD retirement (basically from ANY money they receive from the DoD).
So, if Dilbert gets $400 each month from the DoD and then starts getting $200 each month from the VA, the DoD amount will drop to $200 (400 – 200 = 200). He’ll receive $200 from the VA and $200 from the DoD.
While this may seem lame or unfair, the real benefit to this system is that DoD money is taxable (in most cases), while VA money is NOT! Taxable income is being replaced by non-taxable income. So if you could only receive a certain amount of money, it is far better to get it from the VA than the DoD.
There are, however, two exceptions to this rule: Concurrent Retirement and Disability Pay (CRDP) and Combat Related Special Compensation (CRSC).
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Concurrent Retirement and Disability Pay (CRDP)
Concurrent Retirement and Disability Pay is a law that was passed by Congress in 2004.
It allows qualifying veterans to receive their full DoD benefits and their full VA benefits.
To qualify, you must have a rating of 50% or higher from the VA, and qualify as a retiree in one of the following ways:
- regular retirement
- reservist retired with 20 qualifying years and at retirement age
- Temporary Early Retirement Act retirement
- disability retirement that meets the qualifications noted below
Disability retirees can qualify, but only if they qualify for retirement in a way other than disability. If they only qualify for retirement via disability, then they are NOT eligible for CRDP.
Reservists and Guard members must qualify for retired pay (other than disability retirement) and reach their eligibility age before they can receive CRDP.
The best news about CRDP is that it will happen automatically if you qualify. There is no application process, and you don’t need to do anything to get it.
The most confusing part of Concurrent Retirement and Disability Pay is that if you qualified and were receiving it before 2014, you didn’t get it all at once. Basically, your DoD disability/retirement pay should have increased by approximately 10% each year until it was completely phased-in in 2014. Then, starting in 2014, you should have been getting 100% of both the DoD and VA compensation. Confusing, but again, you don’t have to do anything to get it and it is completely phased-in now, so don’t worry about it.
If you retired from the military a while ago, you should already be receiving CRDP. If you’re in the process of retiring now, you will receive it as soon as your Integrated Disability Evaluation System process is complete. Again, it happens automatically.
If you should be receiving CRDP, but for some reason are not, contact the Defense Finance and Accounting Service at 1-800-321-1080.
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FAQs
What is Concurrent Retirement and Disability Pay?
CRDP is a regulation that allows veterans who qualify the ability to receive both their DoD retirement compensation and their VA disability compensation.
Do I qualify for Concurrent Retirement and Disability Pay?
You qualify for Concurrent Retirement and Disability Pay if you have a 50% or higher rating from the VA and your retirement is one of three types: regular, TERA, or 20-year Reservist at retirement age. If you're medically retired, you can also qualify, but only if you qualify for one of the other three retirements.
Why doesn't everyone receive full DoD retirement and VA disability benefits?
Legally, the maximum a veteran is allowed to receive is their full military retirement. Since money that comes from the VA is not taxable, however, the government decided that if a veteran qualifies for VA disability compensation, then it would be better for the veteran to receive the money from the VA than the DoD. Thus, any money received from the VA is subtracted from DoD money unless the veteran qualifies for CRDP or CRSC.
Is CRDP the same as CRSC?
No. They are two different programs that ultimately do the same thing. The main difference is the requirements to qualify. CRSC is for combat injuries, while CRDP is for particular retirees with a 50% or higher rating from the VA.
Do I have to apply for CRDP?
No. Unlike CRSC, Concurrent Retirement and Disability Pay is given automatically if you qualify.
I qualify for CRDP. How much money will I get monthly?
You will receive all of the benefits you qualify for based on your rating from the VA, and the DoD will also pay you the full retirement benefits for which you qualify.
I qualify for CRDP but my DoD money is still being deducted. What do I do?
If you should be receiving CRDP, but for some reason are not, contact the Defense Finance and Accounting Service at 1-800-321-1080.
