The Department of Defense (DoD) is, and has been, making extra payments to retirees to overcome some or all the offset from retired pay associated with receipt of disability compensation from the Department of Veterans Affairs (VA). Retirees cannot receive benefits simultaneously under both of these programs. The programs are: Concurrent Retirement and Disability Payment (CRDP): This program provides a 10-year phase-out of the offset to military retired pay due to receipt of VA disability compensation.

Qualified individuals are those who are retired active or age 60 retired reserve members who also have a combined VA disability rating of 50% or greater. Members retired under military disability provisions (Chapter 61 to title 10 United States Code) must have at least 20 years of service. Today, more than 275,000 retirees are receiving CRDP payments of over $241 million per month. Effective January 1, 2004: Initial entitlement under the program began on January 1, 2004. Payments were made to nearly 150,000 qualified retirees on February 2, 2004. Effective January 1, 2005: The 10-year phase-out was eliminated for those individuals actually rated 100% disabled by the VA and they became eligible to receive all of their formerly offset military retired pay.

Effective October 1, 2008: The 10-year phase-out will be eliminated for those individuals not rated 100% disabled by VA, but who are paid at the 100% level as “Individual Unemployables” (IUs), and they become eligible to receive all of their formerly offset military retired pay retroactive to January 1, 2005. Initial Rates: CRDP is part of retired pay and cannot exceed the amount that would be otherwise offset. During CY 2004, CRDP was paid to qualified retirees up to the following maximum amount based on the current monthly VA disability rating:

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