The Department of Defense (DoD) is, and has been, making extra payments to
retirees to overcome some or all the offset from retired pay associated with
receipt of disability compensation from the Department of Veterans Affairs
(VA). Retirees cannot receive benefits simultaneously under both of these
programs. The programs are:
Concurrent Retirement and Disability Payment (CRDP):
This program provides a 10-year phase-out of the offset to military retired
pay due to receipt of VA disability compensation. Qualified individuals are
those who are retired active or age 60 retired reserve members who also have a
combined VA disability rating of 50% or greater. Members retired under military
disability provisions (Chapter 61 to title 10 United States Code) must have at
least 20 years of service. Today, more than 310,000 retirees are receiving CRDP
payments of over $427 million per month.
Effective January 1, 2004: Initial entitlement under the
program began on January 1, 2004. Payments were made to nearly 150,000 qualified
retirees on February 2, 2004.
Effective January 1, 2005: The 10-year phase-out was
eliminated for those individuals actually rated 100% disabled by the VA and
they became eligible to receive all of their formerly offset military retired
Effective October 1, 2008: The 10-year phase-out was
eliminated for those individuals not rated 100% disabled by VA, but who are
paid at the 100% level as "Individual Unemployables" (IUs), and they become
eligible to receive all of their formerly offset military retired pay
retroactive to January 1, 2005.
Initial Rates: CRDP is part of retired pay and cannot
exceed the amount that would be otherwise offset. During CY 2004, CRDP was paid
to qualified retirees up to the following maximum amount based on the current
monthly VA disability rating:
Special Rules for Chapter 61 Disability Retirees:
Members retired for disability under Chapter 61 of title 10 United States
Code may be entitled to CRDP only if they have at least 20 years of service
qualifying for regular or reserve retirement. Additionally, any disability
retired pay that is in excess of retired pay to which that member would be
otherwise entitled (i.e., for years of service) remains subject to offset and
may not be restored under the CRDP program.
No Application Required:
Applications for CRDP are neither required nor accepted. The Defense
Finance and Accounting Service (DFAS) will determine CRDP benefits
automatically. Retirees who are not receiving payments, but believe they
qualify, should contact their Military Department or DFAS to determine the
reason for non-payment.
entitlement is taxable.
Additional information is available at the following web site:
Combat-Related Special Compensation (CRSC) Program
This program provides a special monthly payment equivalent to the offset to
military retired pay due to receipt of VA disability compensation determined to
be combat-related. Qualified individuals include any military retired members
with an offset to retired pay due to VA compensation determined to be
combat-related. Today, more than 75,000 retirees are receiving CRSC payments of
over $71 million per month.
Effective June 1, 2003: Initial benefits were
payable only to members with at least 20 years of active duty or equivalent
reserve duty (i.e. 7200 points) who had combat-related disabilities totaling a
rating of 60% or more, or with a rating of 10% or more for combat-related
injuries for which they were awarded a Purple Heart.
Effective January 1, 2004: Eligibility was extended to
members with any level of VA rating for combat-related disabilities or Purple
Heart which results in an offset to military retired pay. Additionally,
eligibility was extended to members receiving Reserve retired pay (i.e.,
Reserve members at age 60 or younger in certain cases and with 20 "good" years
or Reserve members retired under Temporary Early Retirement Authority (TERA).
Effective January 1, 2008: Eligibility was extended to
military disability retirees (i.e., Chapter 61 of title 10 United States Code)
and members retired under active duty TERA rules.
Effective January 1, 2013: The method for computing the
monetary entitlement for members with military disability retirements under
Chapter 61 of title 10 United States Code was changed to ensure no such
members were disadvantaged from receiving an increased disability rating.
Special Rules for Chapter 61 Disability Retirees:
According to law, members retired for disability under Chapter 61 of
title 10 United States Code must have the CRSC entitlement limited to an
amount that when combined with any military retired pay remaining after
offset for VA disability compensation will not exceed the retired pay they
would otherwise be entitled to for retirement computed for years of service
(i.e., 2 1/2 percent x years of service x pay base).
To receive CRSC
benefits, retirees must apply with their Branch of Service on a DD Form 2860.
The Service will determine which disabilities, if any, qualify as
combat-related. DFAS will pay CRSC based on the current combined disability
rating of combat-related disabilities as compensated for the current month by
VA. Benefits before January 2004 are based on the VA compensation rate for a
"veteran alone" and applicable to only those disabilities determined as
Taxability: This entitlement is non-taxable.
Information: Additional information is available at
the following sites:
Army Navy & Marine Corps Air Force
Services may be contacted at the following addresses and toll-free numbers:
Department of the Army U.S. Army Human Resources Command ATTN: AHRC-PDR-C
(CRSC), Dept 420 1600 Spearhead Division Avenue Fort Knox, KY 40122-5402 (Toll
NAVY AND MARINE CORPS:
Department of Navy Naval Council of Personnel Boards Combat-Related Special
Compensation Branch 720 Kennon Street S.E., Suite 309 Washington Navy Yard, DC
20374-5023 (Toll free 1-877-366-2772)
United States Air Force Personnel Center Disability Division (CRSC) 550 C
Street West, Suite 6 Randolph AFB TX 78150-4708 (Toll Free 1-800-616-3775)