What happens if you get retirement pay but are eligible for VA disability?
You may be eligible for either Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC).
Concurrent Retirement and Disability Pay (CRDP)
CRDP is a DOD program that lets some individuals receive both military retired pay and VA disability compensation.
To qualify for CRDP, veterans must:
- Have a VA service-connected rating of 50% or more
- Be retired from military service based on longevity, including temporary Early Retirement Authority (TERA) retirees; or
- Be retired under Chapter 61 with 20 or more qualifying years of service; or
- Be retired from National Guard or Reserve service with 20 or more qualifying years; and
- Be eligible to receive retired pay (must be offset by VA payments).
You don't need to apply for this benefit. Payment is coordinated between VA and DFAS.
Combat-Related Special Compensation (CRSC)
CRSC is a DoD program that provides tax-free monthly payments to eligible retired veterans who have combat-related disabilities. With CRSC, veterans can get both their military retirement pay and VA disability compensation for combat related disabilities.
To qualify for CRSC, veterans must:
- Be a military retiree.
- Be entitled to and/or receiving military retired pay.
- Have a compensable service-connected disability.
In addition, the veteran must be able to provide evidence that their disabilities were the result of one of the following:
- Training that simulates war (e.g., exercises, field training)
- Hazardous duty (e.g., flight, diving, parachute duty)
- An instrumentality of war (e.g., combat vehicles, weapons)
- Armed conflict (e.g., gunshot wounds, Purple Heart)
Disabilities related to in-service exposure to hazards (e.g., Agent Orange, Gulf War illnesses, radiation exposure) for which VA awards compensation are also considered combat-related for CRSC purposes.
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