Concurrent Retirement Disability Payments Increase

Concurrent Retirement Disability Payments (CRDP) is a phased-in restoration of the retired pay deducted from military retirees’ accounts due to their receipt of Department of Veterans Affairs (DVA) compensation.  The phased-in restoration began January 1, 2004 with the first payments dated February 2, 2004.  The Defense Finance and Accounting Service (DFAS) processed the 2007 CRDP increase based on the new restoration rate of 49.60 percent.  The increase is effective Jan. 1 and retirees can anticipate receipt of the increase in their Feb.1, 2007, payment.

You are eligible if you have a DVA-rated, service-connected disability of 50% or higher, unless you are a disability retiree with less than 20 years of service or a retiree who combined your military time and civil service time to qualify for a civil service retirement.  If you combined your military time and civil service time in order to enhance your civil service retirement from OPM, you are eligible for CRDP payments; however, you will have to reinstate your retired pay by coordinating with OPM.

CRDP pay computation begins with the “table rates”:

To help illustrate the process, let us assume the following for an eligible retiree:

To compute CRDP, subtract the CRDP table rate from the VA disability amount:

Now, multiply the difference by the applicable restoration rate (we use the 2007 restoration rate of 49.60% for this example):

Add the product to the table rate amount to arrive at the 2007 CRDP amount:  

Additional information concerning CRDP can be found on the DFAS website in the Retired and Annuity Pay section.