What is CRDP?
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 (reflected on Retiree Account Statements as the “VA waiver”). The phased-in restoration began January 1, 2004 with the first payments dated February 2, 2004.
National Defense Authorization Act: New CRDP Implications
Eligibility
You are eligible for CRDP if you have a DVA-rated, service-connected disability of 50 percent or higher and have twenty (20) or more qualifying years of service for a normal retirement. For members of the Reserve Components this means that you must be in receipt of a "20 Year Letter" and be at least 60 years of age. 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.
Pay Delivery
CRDP payments are direct deposited or mailed based on your current retired pay information.
Your CRDP payments will reflect as a decrease in the VA waiver deduction on your Retiree Account Statement; however, you will continue to receive the same amount from the DVA.
Taxability
CRDP payments are taxable according to your current retired pay Federal Income Tax Withholding (FITW) tax rate and may affect the amount you wish to have deducted for State Income Tax Withholding (SITW).
Collection Actions
CRDP payments are subject to collection actions for alimony, child support, community property, garnishment and government debt.
Updates
Look for updates on this Web site as they become available. For additional information, please see the official retiree newsletter for your branch of service, as well as articles in other retiree publications.
