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Retired and Annuitant Pay: Retroactive Payment
Retired and Annuitant Pay
 Page Index
Retroactive Payment
 NDAA 2008
 Section 641
Section 642 - Individual Unemployability
 Section 642 - Individual Unemployabilityprint page :: email page  

Background

The National Defense Authorization Act (NDAA) of 2008, Section 642 expanded the eligibility requirements for Concurrent Retirement Disability Payment (CRDP). Retirees who were rated by the Department of Veterans Affairs (DVA) as unemployable, generally referred to as Individual Unemployability (IU), and are in receipt of DVA disability compensation as a result of IU, will become eligible to receive full concurrent receipt of both their DVA compensation and Retired Pay. This section of the Act is effective October 1, 2008 and is retroactive to January 1, 2005.

Eligibility

To qualify for the CRDP entitlement, the retiree must have 20 years of service or retired under Temporary Early Retirement Authority (TERA), must be in receipt of retired pay, in receipt of DVA compensation, rated 50 percent or higher by the DVA. Those rated by the DVA as IU, are compensated at the 100 percent rate in accordance with the DVA disability compensation basic rates. Payment is not a separate payment but reduces the dollar for dollar offset that retirees give up for every dollar they receive from the DVA. This will eliminate the offset and give retirees in this category all of their retired pay, and they will continue to receive the DVA compensation as they have been all along. In addition, to receive the additional compensation amount, the retiree must be receiving compensation at a disability rating not less than 60 percent and be rated IU.

Retirees will not need to take any action in order to receive this increased benefit amount. The Defense Finance and Accounting Service receives this information from the DVA on a regular basis.

The monthly entitlement began in October 2008. As of November 1, 2008, an eligible retiree will receive full retired pay and VA compensation.

Retirees will not need to take any action in order to receive this increased benefit amount. The Defense Finance and Accounting Service receives this information from the DVA on a regular basis.

Questions concerning retroactive payment can be submitted via the Internet by using our Retired Pay Customer Inquiry Request .