Concurrent Military Retired Pay and VA Disability Compensation
There is a general rule of law that a military retiree may not receive both Disability Compensation from the Department of Veterans Affairs (VA Disability Compensation) and military retired pay concurrently. Instead, a military retiree may waive his/her military retired pay, dollar for dollar, in order to receive VA Disability Compensation. This law is located at Title 38 United States Code (U.S.C.), sections 5304 and 5305.
The law provides a limited exception to this general rule. Under the limited exception, military retirees (other than those retired by the military under Chapter 61 for disability) who meet the eligibility criteria listed below are not subject to the general rule. There are special rules that apply to Chapter 61 Military Disability Retirees that can be found in Title 10 United States Code section 1414(b).
This limited exception has been often referred to as Concurrent Retirement and Disability Pay or CRDP. However, CRDP is not a term used in the law. It is simply meant to convey that some military retirees may have the right to concurrently receive their military retirement pay (including military disability retired pay) and VA Disability Compensation.
Eligibility (of Retirees Who DidNotRetire Under Chapter 61 for Disability):
To be eligible to receive both military retired pay and VA Disability Compensation concurrently, a member who did not retire under Chapter 61 for disability must:
- Be entitled for any month to both military retired pay and VA Disability Compensation; and
- Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities.
Eligibility (of Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):
To be eligible to receive both military disability retired pay and VA Disability Compensation concurrently, a member who was retired under Chapter 61 for disability must:
- Have completed 20 years or more of service creditable under 10 U.S.C. § 1405, or 20 years of service computed under 10 U.S.C. § 12732, at the time of the retirement; and
- Be entitled for any month to both military disability retired pay and VA Disability Compensation; and
- Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities.
Note: A member who was retired under Chapter 61 for disability and who did not have 20 years or more of service creditable under 10 U.S.C. § 1405, or 20 years of service computed under 10 U.S.C. § 12732 at the time of retirement, is not eligible to receive VA Disability Compensation and military disability retired pay concurrently. Therefore, such members are subject to the general rule that requires a dollar-for-dollar waiver of military retired pay in order to receive VA Disability Compensation.
Entitlement Amount (for Retirees Who DidNotRetire Under Chapter 61 for Disability):
The law that allows qualified retirees to receive military retirement pay and VA Disability Compensation concurrently went into effect on January 1, 2004, and provided for a 10-year phase-in period (January 1, 2004 through December 31, 2013) for most retirees. The phase-in period ended on December 31, 2013.
Effective on January 1, 2014, (with the exception of members who retired under Chapter 61 for disability who are subject to the limitations explained below) members who meet the eligibility requirements above may receive military retired pay, in full, concurrently with VA Disability Compensation.
For historical information on the computation of the amount of military retirement pay that could be paid concurrently with VA Disability Compensation during the phase-in period, please consult archived versions of the Financial Management Regulations available atFinancial Management Regulation.
Example: A regular component service member completed 20 years of active service and voluntarily retired based on longevity/years of service in 2020. (S)he became entitled to $800 per month in gross retired pay. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling in the amount of $1200 per month. This member may receive military retired pay ($800) in full concurrently with the member’s VA Disability Compensation ($1200).
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Ron
“Don't look back. Something might be gaining on you.” —Satchel Paige
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