Concurrent Retirement and Disability Pay (CRDP)
Benefit Fact Sheet
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. This means that an eligible retiree's retired pay gradually increased each year until the phase in was complete effective January 2014. You do not need to apply for CRDP. If qualified, you will be enrolled automatically.
You must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.
Under these rules, you may be entitled to CRDP if:
You are a regular retiree with a VA disability rating of 50% or greater
You are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50% or greater and who has reached retirement age. (In most cases the retirement age for reservists is 60, but certain reserve retirees may be eligible before they turn 60. If you are a member of the Ready Reserve, your retirement age can be reduced below age 60 by three months for each 90 days of active service you have performed during a fiscal year as of 28 January 2008.)
You are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50% 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% or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay.
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.
If DFAS finds that you are also due a retroactive payment from the VA, we will forward an audit to the VA. They are responsible for paying any money they may owe you.
Your retroactive payment date may go as far back as January 1, 2004, but can be limited based on:
Your retirement date or
When you first increased to at least 50% disability rating
No CRDP is payable for any month prior to the effective date of January 2004.
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.
For more information, please visit the CRDP webpage maintained by the Defense Finance and Accounting Service: