What Is Concurrent Retirement and Disability Pay (CRDP)
CRDP is a federal program that allows military retirees to receive their full military retirement pay and their VA disability compensation simultaneously. Without CRDP, retirees rated at 50% or higher disability typically had to choose one or the other, with the VA disability amount offset by their retirement pay.
Congress established CRDP in 2003 to recognize that service-connected disabilities and military retirement are separate forms of compensation for different types of service. If you retired from active duty and subsequently received a VA disability rating of 50% or higher, you likely qualify for CRDP benefits.
Eligibility Requirements
- Retired from active duty, Reserve, or National Guard with 20 or more years of service
- Service-connected disability rating of 50% or higher from VA
- Rating must be based on conditions that are service-connected, not just presumptive conditions alone
- No age or length-of-disability restrictions once you meet the 50% threshold
How Payment Works
Under CRDP, you receive two separate monthly payments. Your military retirement pay continues unchanged from your Defense Finance and Accounting Service (DFAS) account. Your VA disability compensation is paid in full by VA, regardless of retirement amount. There is no offset or reduction applied to either payment.
For example, a retired E-7 with 25 years of service receiving $3,200 monthly retirement and rated at 70% disability (approximately $1,784 monthly in 2024) receives both amounts totaling roughly $4,984 before taxes. The payments are independent.
CRDP vs. Combat Related Special Compensation (CRSC)
CRSC is a separate program for combat-related disabilities. If you qualify for both CRDP and CRSC, you must choose one. CRSC allows you to recoup military retirement pay that was offset by VA disability compensation, but only for combat-related conditions. Many veterans find CRDP more straightforward since it provides full payment of both benefits without choosing between them.
Applying for CRDP
You do not file a separate CRDP application. Once VA rates you at 50% or higher disability, DFAS and VA coordinate automatically through their systems. However, you should verify your status by contacting DFAS to confirm CRDP is applied to your account. Contact DFAS at 1-800-321-1080 or check your military pay account online through the Military Pay Portal.
If CRDP was not applied retroactively when you first received your 50% rating, you can request a manual review from DFAS with documentation of your VA rating.
Common Questions
- Does CRDP affect my VA disability rating? No. Your rating remains based on the severity of your service-connected conditions. CRDP only affects how you receive payments, not the rating itself.
- What if I appeal my disability rating and it drops below 50%? You would lose CRDP eligibility and revert to offset rules where your retirement pay reduces your VA compensation. This is why protecting your rating during appeals is important, and why working with a Veterans Service Officer (VSO) during the appeal process makes sense.
- Are CRDP payments taxable? Military retirement pay is taxable income. VA disability compensation is tax-free. You will receive separate tax documents (W-2 from DFAS, no 1099 from VA).