This guide answers the question "concurrent retirement and disability payments crdp" in plain terms. Concurrent Retirement and Disability Pay (CRDP) is a Department of Defense program that restores retired pay that was previously offset by VA disability compensation.
According to the Defense Finance and Accounting Service (DFAS), CRDP eliminates the dollar-for-dollar reduction of military retired pay for eligible veterans with a VA disability rating of 50% or higher. Many veterans wait years without realizing they qualify for both payments simultaneously.
The problem is that the application process and eligibility rules for concurrent retirement and disability payments crdp confuse even experienced service members. This article breaks down exactly who qualifies, how the payments work, how to apply, what tax implications exist, and common mistakes to avoid.
What Is concurrent retirement and disability payments crdp?
Concurrent retirement and disability payments crdp is not a separate benefit you apply for through a traditional application. It is a restoration of retired pay that was previously withheld due to the VA waiver requirement. Before CRDP existed, veterans had to choose between military retired pay and VA disability compensation — they could not receive both in full.
The National Defense Authorization Act (NDAA) for Fiscal Year 2004 created CRDP as a phased-in program. It gradually restored retired pay over a 10-year period, with full restoration achieved by 2014. Today, eligible retirees receive both payments automatically.
This program applies to veterans who served at least 20 years and have a VA disability rating of 50% or higher. Veterans rated below 50% may still qualify under a separate program called Concurrent Retirement and Disability Pay for Chapter 61 retirees with combat-related disabilities.
How to apply this: Check your VA disability rating letter now — if it shows 50% or higher and you have 20 qualifying years, you likely already qualify for CRDP without filing anything.
How CRDP Differs From CRSC
The rules for concurrent retirement and disability payments crdp differ sharply from the rules governing Combat-Related Special Compensation (CRSC), even though both programs restore concurrent payments. CRDP requires a 50% VA rating and 20 years of service. CRSC requires a combat-related disability but has no minimum rating or years-of-service requirement for Chapter 61 retirees.
The key difference: CRDP is taxable as regular retired pay. CRSC is tax-free. Veterans who qualify for both must choose one — they cannot receive both simultaneously.
Who Administers CRDP?
For anyone pursuing concurrent retirement and disability payments crdp, the Defense Finance and Accounting Service (DFAS) administers the payments. The Department of Veterans Affairs determines disability ratings. You can verify your payment status through the DFAS myPay portal.
Eligibility Requirements for CRDP
To receive concurrent retirement and disability payments crdp, you must meet specific criteria. DFAS publishes these requirements clearly on its official website.
The primary requirements include:
- 20 or more years of qualifying military service (regular retirement or non-regular reserve retirement at age 60)
- A VA disability rating of 50% or higher
- Receipt of military retired pay that is being offset by VA compensation
- Status as a regular retiree, reserve retiree at full retirement age, or Chapter 61 retiree with 20 years
One common scenario: a National Guard member with 20 qualifying years who reaches age 60 and has a 70% VA rating. That member automatically begins receiving both payments once DFAS processes the eligibility determination.
The VA's official CRDP information page states that "CRDP is a phase-in of benefits that gradually restores a veteran's retired pay." The phase-in is complete, so eligible veterans now receive full restoration.
How to apply this: Pull your Retirement Points Statement (DA Form 5016 or equivalent) and verify you have 20 qualifying years before contacting DFAS.
Reserve and National Guard Eligibility
Reserve component members pursuing concurrent retirement and disability payments crdp face additional timing rules. You must reach retirement age — typically age 60, though some deployments reduce this age. Your VA disability rating does not change the age requirement.
Chapter 61 Retirees
Medical retirees (Chapter 61) have a special path to concurrent retirement and disability payments crdp. Those with fewer than 20 years do not qualify unless their disability is combat-related. Those with 20 or more years follow the standard 50% rating rule.
How CRDP Payments Are Calculated
The calculation for concurrent retirement and disability payments crdp follows a specific formula based on your retired pay and VA compensation amounts. DFAS does not send a separate CRDP check — it simply restores the amount that would have been offset.
Here is how the math works:
| Component | What it represents | Action to take |
|---|---|---|
| Gross retired pay | Full amount based on rank and years | Check your DFAS RAS statement |
| VA disability compensation | Amount based on rating and dependents | Check your VA award letter |
| VA waiver amount | Retired pay reduced by VA compensation | Verify on your RAS |
| CRDP restoration | Amount added back to retired pay | Confirm on monthly RAS |
The total monthly payment equals your full retired pay plus your full VA disability compensation. DFAS applies CRDP automatically once eligibility is confirmed through data matching with the VA.
How to apply this: Review your Retiree Account Statement (RAS) on DFAS myPay and compare the "VA Waiver" line to your VA award letter — if numbers match, your CRDP restoration is working.
Payment Schedule
Once you qualify for concurrent retirement and disability payments crdp, deposits follow the same schedule as regular retired pay. Deposits occur on the first business day of each month. VA disability compensation follows a separate schedule, typically arriving on the first of the month as well.
Retroactive Payments
Some veterans receive retroactive CRDP payments if DFAS determines eligibility after the fact. This typically happens when the VA assigns a retroactive disability rating. DFAS processes these adjustments automatically.
Tax Implications of CRDP
CRDP payments are taxable as regular income. This differs from VA disability compensation, which is always tax-free. Understanding this distinction helps you plan withholding correctly. Tax treatment is one of the most overlooked aspects of concurrent retirement and disability payments crdp.
The IRS treats CRDP-restored retired pay identically to regular military retired pay. You will receive a Form 1099-R from DFAS each January showing your total taxable retired pay. The VA does not send a 1099 for disability compensation.
Many veterans are surprised by their tax bill because they assume all military-related payments are tax-free. This is not the case. Only the VA portion remains untaxed.
How to apply this: Adjust your federal tax withholding through myPay if your CRDP restoration increases your taxable income significantly. The IRS offers a withholding calculator on IRS.gov to help.
State Tax Treatment
Some states exempt military retired pay from state income tax. Others tax it fully. Check your state's department of revenue website for specific rules. CRDP-restored pay follows the same state treatment as regular retired pay.
CRSC Tax Advantage
If you qualify for both CRDP and CRSC, compare the tax impact. CRSC is tax-free, which may make it more valuable depending on your tax bracket. DFAS allows you to switch elections during an annual open season.
Common Mistakes to Avoid With concurrent retirement and disability payments crdp
Several errors prevent veterans from receiving their full concurrent retirement and disability payments crdp. Avoiding these mistakes ensures you get every dollar you earned.
The most frequent mistake is assuming CRDP requires a separate application. It does not. DFAS and the VA share data automatically. If you meet the criteria, payments start without action on your part.
Another common error is confusing CRDP with CRSC and applying for the wrong program. Veterans with combat-related conditions may benefit more from CRSC due to its tax-free status. DFAS provides a comparison tool on its website.
Some veterans fail to update their dependent information with the VA. This reduces their VA compensation, which in turn affects the waiver calculation. Keeping your VA records current is essential.
How to apply this: Set a calendar reminder to review your DFAS RAS and VA award letter every six months. Look for unexpected changes in the waiver amount or dependent status.
Not Verifying Eligibility After Rating Increases
Eligibility for concurrent retirement and disability payments crdp can change when your VA rating increases. If your rating rises from 40% to 60%, you become newly eligible for CRDP. DFAS should catch this automatically, but delays happen. Contact DFAS if your rating increased but your retired pay did not change within two months.
Ignoring Open Season for CRSC Election
The annual CRSC open season typically runs in January. Veterans who qualify for both programs can switch elections during this window. Missing the deadline means waiting another year.
Frequently Asked Questions About concurrent retirement and disability payments crdp
How long does it take for CRDP to start after a VA rating increase?
DFAS typically begins CRDP restoration within 30-60 days after receiving updated rating information from the VA. If your rating increased from below 50% to 50% or higher, expect a retroactive adjustment back to the effective date of the new rating. Contact DFAS if nothing changes after two months.
Can I receive concurrent retirement and disability payments crdp while still on active duty?
No. CRDP applies only after you officially retire and begin receiving retired pay. Active duty members cannot receive VA disability compensation and full active duty pay simultaneously under normal circumstances. The programs activate upon retirement.
What happens to CRDP if my VA rating drops below 50%?
If your VA rating decreases below 50%, your CRDP eligibility ends. DFAS will resume offsetting your retired pay by the amount of VA compensation you receive. The change typically takes effect the month following the rating reduction notification.
Does CRDP affect my Survivor Benefit Plan premiums?
Yes. SBP premiums are calculated based on your total retired pay, including CRDP-restored amounts. Higher retired pay means higher SBP premiums. However, your survivors receive benefits based on the full amount, which provides greater protection.
Can I receive concurrent retirement and disability payments crdp if I retired under the Blended Retirement System?
Yes. The Blended Retirement System does not change CRDP eligibility rules. You still need 20 qualifying years and a 50% VA rating. The BRS lump-sum option may affect your retired pay calculation, but the concurrent payment rules remain identical.
Conclusion
Understanding concurrent retirement and disability payments crdp can mean thousands of dollars annually for eligible veterans.
Here are the key takeaways:
- CRDP restores military retired pay that was previously offset by VA disability compensation
- You need 20 qualifying years and a 50% or higher VA rating to qualify
- No application is required — DFAS processes eligibility automatically
- CRDP is taxable, unlike VA disability compensation
- Verify your payments monthly through DFAS myPay
Your next step is simple: log into DFAS myPay and review your latest Retiree Account Statement. If you see a VA waiver amount and believe you qualify for concurrent retirement and disability payments crdp, contact DFAS customer service at 1-800-321-1080 to verify your eligibility status.
