Concurrent Retirement and Disability Pay (CRDP) lets qualifying military retirees receive their full retirement pay and VA disability compensation without offset.
Normally, military retirees cannot collect their full military retired pay and VA disability compensation at the same time — they have to "waive" a dollar of retired pay for every dollar of VA compensation they receive. Concurrent Retirement and Disability Pay (CRDP) is the exception that lets many career retirees receive both in full. Here is who qualifies, how it works, and how it differs from the combat-related version, CRSC.
By law, a military retiree generally cannot receive both military retired pay and VA disability compensation at once. To get VA compensation — which is tax-free — a retiree waives an equal amount of taxable retired pay, dollar for dollar. For years that meant disabled retirees effectively traded part of their pension for their VA benefit. CRDP, phased in starting in 2004 and fully in effect since 2014, restores that waived retired pay for eligible retirees, so they receive both payments in full.
You are generally eligible for CRDP if both of these are true: you are entitled to military retired pay — typically through a 20-year (longevity) retirement, including Reserve and Guard members receiving retired pay — and you have a VA service-connected disability rating of 50% or higher. If you meet both, CRDP restores your retired pay so you receive it in full alongside your VA compensation.
Special rules apply to those medically retired under Chapter 61: they generally need 20 or more years of creditable service for full concurrent receipt, and the concurrent amount can be limited to what a longevity retirement would have paid.
CRDP is automatic. Because the VA shares your disability rating with the Defense Finance and Accounting Service (DFAS), DFAS calculates and starts your CRDP without a separate application in most cases. If your rating later rises to 50% or more, DFAS audits your pay account and may owe you retroactive concurrent pay — potentially back to January 1, 2004, depending on your retirement date and circumstances. If you believe you are entitled to CRDP but are not receiving it, you can submit a written claim to DFAS.
There are two forms of concurrent receipt, and you cannot collect both at the same time — you receive the one that pays more, and you can switch during the annual open season.
| Factor | CRDP | CRSC |
|---|---|---|
| Covers | All service-connected disabilities | Only combat-related disabilities |
| Minimum VA rating | 50% | No minimum |
| Taxable? | Yes (it is retired pay) | No (tax-free) |
| How you get it | Automatic | Must apply (DD Form 2860) |
It depends on your disabilities and your tax situation. CRSC is tax-free but only covers conditions tied to combat or combat training (and certain instrumentalities of war). CRDP covers everything service-connected but is taxable as retired pay. If you qualify for both, DFAS generally pays whichever amount is greater, and you can change your election each year during open season. For retirees with combat-related conditions, it is usually worth comparing the two carefully.
If you are a career military retiree with a VA rating of 50% or higher, CRDP most likely restores your full retired pay on top of your VA compensation — automatically, with no application needed. If some of your disabilities are combat-related, compare CRDP against CRSC to see which pays more. Either way, it is worth confirming that DFAS has your current VA rating on file so you are receiving everything you are entitled to.
Generally, military retirees entitled to retired pay (typically a 20-year or longevity retirement, including Reserve and Guard retirees) who have a VA disability rating of 50% or higher. Those medically retired under Chapter 61 have special rules and generally need 20 or more years of service for full concurrent receipt.
No. CRDP is automatic — DFAS starts it based on the disability rating the VA shares with them. If you believe you are owed it and are not receiving it, you can submit a written claim to DFAS.
Yes. CRDP restores military retired pay, which is taxable. That is a key difference from Combat-Related Special Compensation (CRSC), which is tax-free.
CRDP covers all service-connected disabilities, requires a VA rating of 50% or higher, and is taxable. CRSC covers only combat-related disabilities, has no minimum rating, and is tax-free. You cannot receive both at once — DFAS pays the one that benefits you more, and you can switch during the annual open season.
Possibly. If your rating increased to 50% or more after you retired, DFAS audits your account and may owe retroactive concurrent pay, potentially back to January 1, 2004, depending on your retirement date and circumstances.