Concurrent Retirement & Disability Pay (CRDP)

Army National Guard: Retired

Benefit Fact Sheet

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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 twenty years or more service who have a VA-rated, service-connected disability of 50% or higher and are in receipt of military 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.

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: 1 January 2013