Concurrent Retirement & Disability Pay (CRDP)

Regular Army: Retired

Benefit Fact Sheet

Tweet
Share

Summary:

Public Law 108-136, the National Defense Authorization Act for Fiscal Year 2004, authorized a provision to restore the retired pay currently deducted from retirees' accounts due to the receipt of Department of Veterans Affairs (VA) disability compensation. Concurrent Retirement & Disability Pay (CRDP) is the gradual (phased in) restoration of the retired pay currently being offset by VA disability pay. Under the current law, retirees who are entitled to CRDP will receive both full military retired pay and full VA disability pay with no reduction (i.e., concurrent receipt) by 2014.

Eligibility:

  • CRDP is applicable to all retirees with 20 years or more service who have a VA-rated, service-connected disability of 50% or higher and are in receipt of military retired pay.
  • You are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
  • You are a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50 percent or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay.

Benefit Highlights:

CRDP is a restoration of retired pay; therefore it is subject to collection actions such as alimony, child support, community property, and government debt. CRDP payments are taxable. CRDP payments cease upon the death of the retiree.

Retirees rated totally disabled (100%) by the VA, including those receiving compensation based upon individual unemployability, receive full concurrent receipt immediately with no phase in period.

Additional Information:

For more information, please visit the CRDP webpage maintained by the Defense Finance and Accounting Service:

http://www.dfas.mil/dfas/retiredmilitary/disability/comparison.html

Document Review Date: 15 January 2015