Until more recently, veterans receiving disability pay through the VA system were unable to also collect retirement benefits, forcing them to choose one or the other.
That rule was eventually changed to provide disabled veterans who are also retired with additional retirement benefits.
Now, veterans receiving VA disability pay can receive retirement benefits through the Concurrent Retirement and Disability Pay (CRDP) plan.
What Is the CRDP Plan for Retired Disabled Veterans?
The Concurrent Retirement and Disability Pay (CRDP) plan is a VA system benefits program that allows disabled veterans to collect additional benefits once they reach retirement age.
Started in 2004, this VA system benefit plan allows some veterans to receive retirement pay in addition to their disability pay to reverse a previously-held law that stated they could only receive one or the other.
In addition, the CRDP eliminates the disability pay offset that previously applied when veterans receiving VA disability pay reached retirement age, allowing them to collect more benefits.
Due to certain eligibility requirements for CRDP, that program was then expanded in 2008 to include the Combat-Related Special Compensation (CRSC) plan, allowing more disabled veterans to qualify for retirement pay.
Who Is Eligible For Concurrent Retirement and Disability Pay?
To qualify for the CRDP program and collect retirement pay through the VA system upon reaching retirement age, a veteran must have served for 20 years or more in the military or reserves and have a qualified disability for which they are receiving disability pay.
The veteran must meet all VA system requirements to receive retirement pay.
In addition, retiree veterans must have a disability rating of 50% or more to receive retirement pay through the CRDP program while also receiving disability pay.
Veterans who do not have a disability rating of 50% or more may be able to receive retirement pay through the Combat-Related Special Compensation plan.
What Is the Combat-Related Special Compensation Plan?
When a veteran is receiving disability pay through the VA system and they meet all other retirement qualifications but do not have a disability rating of 50% or more, they can now apply for retirement pay through the CRSC program.
This program pays retirement benefits to veterans with a disability rating of 10% or more when they have a combat-related disability.
These include disabilities sustained due to armed conflict/combat, hazardous duty, an instrumentality of war, and simulated war such as combat training exercises.
Unlike CRDP, which is typically applied automatically to the VA system benefits pay for qualifying retirees, those who do not qualify based on their disability rating must specifically apply for CRSC benefits.
Seek VA System Assistance For Concerns About Retirement Pay
Disabled veterans receiving disability pay through the VA system and meet VA retirement criteria are eligible to also receive concurrent retirement pay through the VA.
The main qualifying criteria for the Concurrent Retirement and Disability Pay plan is a disability rating of 50% or higher.
Those with a disability rating of between 10% and 40% can instead apply for VA system retirement benefits through the Combat-Related Special Compensation plan.
Retired veterans should seek VA system assistance if they do not automatically receive their CRDP benefits, if they have questions about their disability rating and eligibility, or need other help navigating the system to receive concurrent retirement pay.
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