This is a little known issue but may affect folks you know. It is complicated and my advice is if faced with questions refer folks to this post or the email below at the bottom of this post.
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 because of the VA “waiver” or offset. The VA waiver or offset, prior to 1 January 2004, would reduce retired pay by the same amount, dollar-for-dollar, that a service member received from the VA, as compensation. It is important to understand that CRDP is not an additional payment. Rather, CRDP simply removes the VA waiver/offset, thus allowing you to receive all of your retired pay and all of your VA compensation. To be eligible for CRDP, a retiree must meet the following requirements:
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, length-of-service (20 years or more of active federal service), retiree with a VA disability rating of 50 percent or greater.
* you are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50 percent 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 for mobilization in support of a contingency operation since 28 January 2008).
* you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent 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 percent or greater. In this situation, might become eligible for CRDP at the time you would have become eligible for retired pay, providing you have at least 20 years of active federal service.
Note-If you were immediately retired from the Army Reserve or National Guard due to disability and have less than 20 years of active federal service, but do have a notification or eligibility to receive retired pay (also known as a 20 year letter) and you have a VA rating of 50% or more, you will most likely qualify for CRDP, but not until you would have been eligible for retired pay for a non-regular retirement (normally age 60).
Note- In certain situations, Soldiers who are qualified for and receiving CRDP will still have a VA waiver/offset. This happens when Soldiers who qualify for a regular, length-of-service retirement (have more than 20 years of active federal service), are retired due to disability and have disability retired pay that is more than they would have received for a regular retirement. The VA waiver/offset in this situation reduces the disability retired pay amount to the amount that the Soldier would have received had they not been retired due to disability. The reason for this is the law does not allow a military member to receive more in disability retired pay than they would have received for a regular retirement.
For further information about this contact firstname.lastname@example.org.