Concurrent Military Retired Pay and VA Disability Compensation


There is a general rule of law that a military retiree may not receive both Disability Compensation from the Department of Veterans Affairs (VA Disability Compensation) and military retired pay concurrently. Instead, a military retiree may waive his/her military retired pay, dollar for dollar, in order to receive VA Disability Compensation. This law is located at Title 38 United States Code (U.S.C.), sections 5304 and 5305.

The law provides a limited exception to this general rule. Under the limited exception, military retirees (other than those retired by the military under Chapter 61 for disability) who meet the eligibility criteria listed below are not subject to the general rule. There are special rules that apply to Chapter 61 Military Disability Retirees that can be found in Title 10 United States Code section 1414(b). 

This limited exception has been often referred to as Concurrent Retirement and Disability Pay or CRDP. However, CRDP is not a term used in the law. It is simply meant to convey that some military retirees may have the right to concurrently receive their military retirement pay (including military disability retired pay) and VA Disability Compensation. 

Eligibility (of Retirees Who Did Not Retire Under Chapter 61 for Disability):

To be eligible to receive both military retired pay and VA Disability Compensation concurrently, a member who did not retire under Chapter 61 for disability must:
 
  • Be entitled for any month to both military retired pay and VA Disability Compensation; and
  • Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities.

Eligibility (of Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):

To be eligible to receive both military disability retired pay and VA Disability Compensation concurrently, a member who was retired under Chapter 61 for disability must:
 
  • Have completed 20 years or more of service creditable under 10 U.S.C. § 1405, or 20 years of service computed under 10 U.S.C. § 12732, at the time of the retirement; and
  • Be entitled for any month to both military disability retired pay and VA Disability Compensation; and
  • Have a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the VA schedule for rating disabilities.
Note: A member who was retired under Chapter 61 for disability and who did not have 20 years or more of service creditable under 10 U.S.C. § 1405, or 20 years of service computed under 10 U.S.C. § 12732 at the time of retirement, is not eligible to receive VA Disability Compensation and military disability retired pay concurrently. Therefore, such members are subject to the general rule that requires a dollar-for-dollar waiver of military retired pay in order to receive VA Disability Compensation.

Entitlement Amount (for Retirees Who Did Not Retire Under Chapter 61 for Disability):

The law that allows qualified retirees to receive military retirement pay and VA Disability Compensation concurrently went into effect on January 1, 2004, and provided for a 10-year phase-in period (January 1, 2004 through December 31, 2013) for most retirees. The phase-in period ended on December 31, 2013.  

Effective on January 1, 2014, (with the exception of members who retired under Chapter 61 for disability who are subject to the limitations explained below) members who meet the eligibility requirements above may receive military retired pay, in full, concurrently with VA Disability Compensation.  

For historical information on the computation of the amount of military retirement pay that could be paid concurrently with VA Disability Compensation during the phase-in period, please consult archived versions of the Financial Management Regulations available at https://comptroller.defense.gov/FMR.

Example: A regular component service member completed 20 years of active service and voluntarily retired based on longevity/years of service in 2020. (S)he became entitled to $800 per month in gross retired pay. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling in the amount of $1200 per month. This member may receive military retired pay ($800) in full concurrently with the member’s VA Disability Compensation ($1200).

Entitlement Amount (for Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):

A military disability retiree with more than 20 years of creditable service for retirement must still waive retired pay in order to receive VA Disability Compensation. The waiver amount is the amount that the military disability retired pay exceeds the amount of military retired pay to which the member would have been entitled to receive if the member had hypothetically been retired under another law (such as the law that permits voluntarily retirement based on longevity/years of service). As a result, the amount of military disability retired pay that a disability retiree may receive concurrently with VA Disability Compensation may be limited. (Disability retirees who retired before December 31, 2013 were also subject to the phase-in described above).

Example: A regular component service member is retired under Chapter 61 for disability in 2020 after completing more than 20 years of creditable service under 10 U.S.C. § 1405. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling. This member may only receive concurrent military disability retired pay in an amount equal to what the member would have hypothetically received had the member retired for longevity/years of service. Any remaining amount of military disability retired pay is still subject to the waiver requirements of Title 38 United States Code (U.S.C.), sections 5304 and 5305.

Note: For Reserve/Guard members who receive their Notification of Eligibility for Retired Pay at Age 60 (“NOE”) and are later retired under Chapter 61 for disability with immediate retired pay, concurrent retired pay may not be paid until the member reaches the eligibility age that (s)he otherwise would have been required to reach in order to start receiving military retired pay. This is because there is no provision of law under which such a member would be entitled to receive retired pay before eligibility age if the member had not been retired under Chapter 61 for disability.  

Reserve/Guard members who are retired under Chapter 61 for disability should contact their Branch of Service to determine their eligibility age and creditable service/points, and to ensure that the Branch of Service is in contact with DFAS so that concurrent retired pay may be started.  DFAS must receive the information directly from the Branch of Service. Any recalculation of creditable service/points must be addressed with the Branch of Service.

Example: In 2020, a Reservist/Guard member received their NOE notifying the member that they had completed 20 or more years of service computed under 10 U.S.C. § 12732. The member is later retired for disability under Chapter 61 with immediate retired pay (before reaching eligibility age). The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling. The member is not entitled to be paid concurrent military disability retired pay until the member reaches the eligibility age that (s)he otherwise would have been required to reach before military retired pay would have started. The Branch of Service must inform DFAS of the member’s eligibility age and the service that is creditable to compute the concurrent military disability retired pay. This member may only receive concurrent military disability retired pay after reaching eligibility age and only in an amount equal to what the member would have received at eligibility age if (s)he had not been retired for disability under Chapter 61.

Applying for Concurrent Military Retired Pay or Military Disability Retired Pay and DVA Disability Compensation

Because the VA shares information about VA Disability Compensation with DFAS, in most circumstances, DFAS is able to pay concurrent retired pay or concurrent military disability retired pay without the need for the member to submit a written claim.  

For Reserve/Guard members who are retired under Chapter 61 for disability before eligibility age, DFAS must receive retirement orders directly from your Branch of Service to start your entitlement to concurrent retired pay at eligibility age. Therefore, it is very important for you to contact your Branch of Service to ensure that the concurrent retired pay is started.  Any retiree who believes that (s)he is entitled concurrent retired pay but is not receiving it should submit a written claim to DFAS.

To submit a claim, complete a DD Form 827 (Application for Arrears in Pay) and submit by mail to DFAS Retired and Annuitant Pay, 8899 E 56th Street, Indianapolis, IN 46249-1300, or via fax at 1-800-982-8459 (toll free). Another option is to upload the completed and signed claim form online using our askDFAS online upload tool: https://www.dfas.mil/askdfas

Retroactive Concurrent Military Retired Pay

If your VA disability rating changes after you begin receiving retired pay, you may be eligible for retroactive concurrent retired pay or disability retired pay. When DFAS receives updated VA Disability Compensation information from the VA, we will audit your pay account to determine if you are due any retroactive concurrent retired pay or disability retired pay. An audit of your account requires researching pay information from DFAS, the VA, and your Branch of Service.

Your retroactive concurrent retired pay payment date may go back as far as January 1, 2004, but may also be limited based on:
•           your retirement date; or
•           when your disability rating first increased to at least 50 percent; or
•           the circumstances of your specific case (i.e. Chapter 61, non-regular etc).

If DFAS finds that you are also due a retroactive payment of VA Disability Compensation from the VA, we will forward an audit to the VA. They are responsible for paying any VA Disability Compensation they may owe you.
Find out more about the VA Waiver, CRDP, and CRSC on the webpage: "Understanding the VA Waiver and Retired Pay/CRDP/CRSC."

Questions

If you have questions regarding your military retired pay, please contact DFAS at 800-321-1080. For questions concerning disability ratings or disability compensation, please contact the VA at 800-827-1000.




Note: The information on this website is provided to explain typical situations regarding retiree and annuitant benefits. For details and exceptions, please see applicable laws, financial management regulations, and instructions.

Page Updated Jul. 17, 2023