What is military retirement and disability pay?
BY TAMMY JAVENKOSKI
Oneida County CVSO
Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) are programs created by Congress to allow eligible military retirees to receive monthly VA disability compensation in addition to retired pay.
CRDP is a restoration of retired pay for retirees with service-connected disabilities that was lost due to the VA compensation offset prior to Jan. 1, 2004. This means that an eligible retiree’s retired pay was fully restored (phase in completed as of 2014). CRDP is taxed in the same manner as your retired pay and it is normally considered taxable income. No application is required. Eligible retirees receive CRDP automatically.
CRDP-eligible veterans are:
• A regular retiree with 20 or more years of active service who has a VA disability rating of 50 percent or greater, or
• A reserve retiree with 20 qualifying years of service who has a VA disability rating of 50 percent or greater and who has reached retirement age, or
• Retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
CRSC is a special compensation for combat-related disabilities. It is non-taxable, and retirees must apply to their branch of service to receive it.
• Are entitled to receive military retired pay (regardless of time served on active duty), and
• Are rated at least 10 percent by the VA, and
• Have service-connected disabilities that were incurred as a direct result of war or instrumentality of war.
Disabilities that may be considered combat-related include injuries incurred as a direct result of:
• Armed conflict, or
• Hazardous Duty, or
• An instrumentality of war, or
• Simulated war.
In summary, if you are a military retiree who served 20 or more years and are also service-disabled rated at 50 percent or higher, you are automatically eligible for CRDP and do not need to apply for the benefit. If you were medically retired with less than 20 years of service, you may be eligible for CRSC if the disability or disabilities you were medically retired for were combat-related. That means not only can you can receive your full VA disability compensation but also a portion of your military retired pay as well. This, however, is a benefit that requires an application.
Tammy Javenkoski can be reached at 715-369-6127 or email@example.com. Jason Dailey, Assistant CVSO, can be reached at the same number or firstname.lastname@example.org. You can also contact us via Facebook at www.facebook.com/oneidacvso.