Concurrent Retirement and Disability Pay (CRDP)

By law, VA compensation normally reduces military retired pay dollar for dollar. Concurrent Retirement and Disability Pay restores the retired pay for a retiree with a service-connected rating of 50% or more. The phase-in period ended in 2014, so an eligible retiree now receives both in full. It applies to a longevity retiree with 20 or more years of service, to a reservist with 20 qualifying years who is drawing retired pay, and to a chapter 61 disability retiree with 20 or more years, who must still waive any disability retired pay above what the longevity formula would have paid. A chapter 61 retiree with fewer than 20 years cannot receive CRDP under 38 C.F.R. 3.750(b)(3). CRDP is automatic. DFAS pays it once VA and the service department exchange the rating, and it is taxable because it is retired pay. A retiree eligible for both CRDP and Combat-Related Special Compensation receives one at a time and elects between them. The Major Richard Star Act would extend concurrent receipt to combat-injured chapter 61 retirees with fewer than 20 years. It had not passed either chamber of the 119th Congress when this entry was read, and it is not law.