Concurrent Retirement and Disability Pay (CRDP)
Allows military retirees with 50%+ VA disability rating to receive BOTH full retirement pay AND full VA disability compensation – no offset.
Who qualifies: Veterans, Veterans with a service-connected disability.
CRDP eliminates the longstanding offset that forced military retirees to choose between retirement pay and VA disability compensation:
Before CRDP (old law):
• Every dollar of VA disability pay reduced retirement pay by one dollar
• Veterans received only the larger of the two, not both
With CRDP:
• Military retirees with 50%+ VA disability rating receive BOTH full retirement pay AND full VA disability compensation
• No offset – you receive 100% of each
• CRDP is automatic – no application required
• CRDP is phased in for Chapter 61 (disability) retirees with less than 20 years
CRDP vs CRSC:
• CRDP: requires 50%+ disability rating, taxable, automatic
• CRSC: requires combat-related disability (any %), tax-free, must apply
• Cannot receive both – DFAS automatically pays whichever is higher, or veteran can elect
If you have both combat-related and non-combat disabilities, carefully compare CRSC vs CRDP to determine which pays more.