Can you get both?
By default, federal law does not let a military retiree be paid twice for the same service. To receive VA disability compensation, you waive the same amount of retired pay, dollar for dollar. Two programs undo that offset for many retirees.
| CRDP | CRSC | |
|---|---|---|
| Full name | Concurrent Retirement and Disability Pay | Combat-Related Special Compensation |
| Who qualifies | Longevity retirees with 20+ years and a VA rating of 50% or more, plus Reserve retirees with 20 qualifying years | Retirees with a combat-related disability rated 10% or more, including many medical retirees |
| How you get it | Automatic: DFAS and VA share your rating | You apply to your service's CRSC office |
| Taxes | The restored retired pay is taxable | Tax-free |
| How much | All of the waived retired pay | Up to the VA amount for the combat-related part of your rating |
You cannot receive both CRDP and CRSC at the same time. If you qualify for both, you are paid whichever is larger, and you can switch each January during the yearly open season.
Example
A retiree with 20 years, $2,447.40 a month in retired pay and a 50% VA rating with a spouse qualifies for CRDP. They keep all of their retired pay and also receive $1,241.90 from VA, for $3,689.30 a month. With a 40% rating instead, CRDP does not apply: $882.84 of retired pay is waived, VA pays $882.84 tax-free, and the total stays $2,447.40.
Why the waiver still helps below 50%
Even when the total does not change, the VA part is tax-free and the retired pay it replaces is not. For someone in the 12% federal bracket, $882.84 a month moving from taxable to tax-free saves about $1,270 a year in federal tax, plus any state tax.
Common questions
What about medical retirees with under 20 years? They generally do not qualify for CRDP. Many qualify for CRSC if the disability is combat-related, which includes injuries from training that simulates war and from hazardous duty.
Does a VA rating increase change my retired pay? If you are under the waiver, a higher rating raises the VA part and lowers the retired pay part by the same amount, until the rating reaches 50% and CRDP starts.
What if I received separation pay or a disability severance payment earlier? VA holds back compensation until that payment is recovered, under separate rules.
