Veterans Benefits Network-CRDP vs CRSC (2024)

    Discussion: Concurrent Military Retired Pay and VA Disability Compensation

    8:45 PM - 4 days ago#3

    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).

    ——
    Ron

    “Don't look back. Something might be gaining on you.” —Satchel Paige

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      Veterans Benefits Network-CRDP vs CRSC (2024)

      FAQs

      Veterans Benefits Network-CRDP vs CRSC? ›

      If you meet the eligibility requirements, CRDP is automatically applied. The amount that had been taken away by the VA waiver, is now included back in, thus increasing the amount you receive to your full retired pay. Next, we have CRSC. CRSC is for veterans whose disabilities are combat-related.

      Which one is better, CRSC or CRDP? ›

      As a special compensation for disability, CRSC payments are not taxed and cannot be divided by a court in a divorce. As restored retired pay, CRDP is taxable income and can be divided by a court in a divorce.

      Can I receive both CRSC and CRDP? ›

      SECTION 1414 OF THE SAME TITLE: The law requires that a member eligible for both CRSC, as provided by section 1413a of title 10, United States Code, and Concurrent Retirement and Disability Payments (CRDP), as provided by section 1414 of title 10, United States Code, may not receive both but must elect which ...

      How do I get 100% CRSC? ›

      In order to receive the full retroactive CRSC entitlement, you must file your CRSC claim within 6 years of the date of any VA rating decision that could potentially make you eligible for CRSC or the date you become entitled to retired pay, whichever is more recent.

      What are the benefits of Crdp? ›

      Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive both military retired pay and Veterans Affairs (VA) compensation. This was prohibited until the CRDP program began on January 1, 2004. CRDP is a "phase in" of benefits that gradually restores a retiree's VA disability offset.

      How hard is it to get CRSC? ›

      You must be in retired status, receiving military retired pay, you must be rated by the VA and have service-connected disabilities, have an active VA waiver in place with DFAS.

      Is CRSC worth it? ›

      YES. Combat-Related Special Compensation (CRSC) is one of two forms of concurrent receipt. Concurrent Receipt allows military retirees to receive both their retired pay and VA disability compensation concurrently without a reduction in your retired pay amount.

      Does CRSC replace VA disability? ›

      A: If you elect to receive CRSC, your retired pay will be offset by the full amount of your VA disability pay. You may still receive some retired pay if your retired pay exceeds your VA disability pay.

      Who qualifies for CRDp? ›

      Retirees with 20 years of service and a service-connected disability rated at 50 percent or greater by the VA are eligible for CRDP. needs to be service connected. with a former spouse. Must have a VA disability rating of 50-100 percent.

      Do you get back pay for CRDP? ›

      In addition to monthly CRDP payments, you may be eligible for a retroactive payment. DFAS will audit your account to determine whether or not you are due retroactive payment. An audit of your account requires researching pay information from both DFAS and VA.

      What is the average CRSC payment? ›

      2 The average disability offset for those retirees was just over $1,900 per month in 2022, almost three times the average CRSC payment of just under $700 per month. Under H.R. 1282, those disability retirees would instead receive the full amount of their retired pay.

      What is the 70-40 rule for VA disability? ›

      To be eligible for schedular TDIU benefits, a veteran must have either: a single service-connected condition with a rating of at least 60 percent; or. (the 70/40 rule) at least two service-connected conditions with a combined rating of at least 70 percent, with at least one of the conditions rated 40 percent or higher.

      Does PTSD qualify CRSC? ›

      Does PTSD qualify for CRSC? It can, yes. Any VA disability for which you are rated at 10% or over will serve as one qualification for CRSC.

      Which is better CRSC vs Crdp? ›

      CRSC is the combat-related version of concurrent receipt unlike CRDP which is not combat-related. CRSC is tax-free; CRDP is not. You must apply to your Service for CRSC. The Services determine what proportion of your VA disability rating is combat-related.

      How much is a CRDP payment? ›

      Concurrent Retirement and Disability Payment (CRDP):
      VA Disability RatingInitial CRDP Payment in CY 2004
      100% (total)$750
      90%$500
      80%$350
      70%$250
      2 more rows
      Feb 12, 2013

      Why am I not getting Crdp? ›

      The only retirees not eligible for CRDP are those retirees who retired for medical reasons (under chapter 61 of USC 10) with less than 20 years of service. Reserve Component members must be receiving retired pay to receive CRDP; after all, CRDP is the restoration of retired pay that is withheld due to the VA Waiver.

      How much does CRDP pay? ›

      Concurrent Retirement and Disability Payment (CRDP):
      VA Disability RatingInitial CRDP Payment in CY 2004
      100% (total)$750
      90%$500
      80%$350
      70%$250
      2 more rows
      Feb 12, 2013

      Do you get back pay for CRSC? ›

      To be sure you get the full amount of your back payments, you must file your CRSC claim within 6 years of any VA rating decision or the date you become entitled to retired pay, whichever comes first. If you file your claim after this 6-year limit, you can only get up to 6 years' worth of any payments due to you.

      How long does it take to get CRDP back pay? ›

      If you are due any money from DFAS, you will receive it within 30-60 days of receipt of your first CRDP monthly payment. If DFAS finds that you are also due a retroactive payment from the VA, they will forward an audit to the VA. VA is responsible for paying any money you may be due.

      What disabilities qualify for CRSC? ›

      CRSC is payable for disabilities that are found to be related to combat, including disabilities that were incurred in actual combat, while engaged in hazardous service, in the performance of duty simulating war, training for combat or as a result of an instrumentality of war.

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