If you’re a retired veteran who has a service-connected disability, you want to receive all the compensation you’re entitled to. This post explains the various types of veteran retirement benefits and how they may be coupled with VA disability benefits.
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In this article about CRDP and veteran retirement benefits:
Veteran retirement programs
Veteran retirement benefits come from various sources, all of which you’ll want to be aware of since you must apply for some of the programs to receive benefits. Below we explain CRDP, CRSC, TDRL and PDRL, as well as military retirement pay. Which veterans qualify for each program? Can you receive more than one type of VA or military retirement at once? Continue reading to learn more.
Military retirement pay
Military retirement pay is a benefit offered by the Department of Defense (DOD) for veterans who retire from the military. Depending on when you served, you may be eligible for either the Final Pay, REDUX, High-36, or Blended Retirement System plans.
To find out how much disability military retirement pay you may be eligible for, you’ll need to find your retired base pay, which is calculated based on years of service and the amount of basic pay you received. The exact formula varies depending on when you entered service.
Military retirement pay can be difficult to navigate and understand. The DOD breaks down the eligibility requirement for these different plans, who qualifies, and more on their website.
Disability retirement pay
In addition to the other four retirement plans, the DOD offers a disability retirement plan, sometimes referred to as Chapter 61 retirement. Veterans must have a disability rating of 30% or higher to qualify, in this case from the DOD. They must have also been deemed medically unfit to continue serving.
Based on the veteran’s level of disability, they will either be placed on the Temporary Disability Retired List (TDRL) or the Permanent Disability Retired List (PDRL). The list a veteran is on can affect the amount of retirement they receive.
TDRL is a status given to service members with medical conditions that could improve and allow them to return to active duty. They are on the list for up to five years, unless they were put there on or after Jan. 1, 2017, in which case they’re only on the list for three years. Benefits begin right away.
These service members have their condition reassessed at least every 18 months. At reassessment, they can either be returned to active duty, stay on the TDRL list, or be moved to the PDRL list.
At the end of the TDRL period, they must either discharge, retire, or return to duty.
Service members on the TDRL list receive 50-75% of their active duty base pay, depending on their branch’s disability rating.
PDRL is designed for service members with medical conditions that are evaluated as at least 30% disabling and aren’t expected to improve enough for them to return to active duty. These people are fully separated from the military. They then receive a retirement base pay, plus their disability pay.
What is CRDP?
Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive military retirement pay and VA disability compensation at the same time. CRDP gradually restores money lost to the veteran after waiving their right to retirement pay in favor of receiving VA disability payments.
CRDP comes in the form of a taxable monthly payment, and it can’t exceed the veteran’s gross retirement pay.
To qualify, a veteran must be eligible for retirement pay and have a service-connected disability rated at 50% or higher by the VA.
Veterans don’t have to apply for CRDP. If they qualify, they should automatically receive it.
What is CRSC?
Combat-Related Special Compensation (CRSC) is a tax-free monthly compensation benefit for retirees with disabilities connected to combat. It is paid in addition to any retirement pay the veteran may already receive.
To qualify for CRSC, a veteran must:
- Be eligible for military retired pay
- Be rated at least 10% by the VA for a disability that is the result of combat
- Waive VA pay from retirement pay
- File a CRSC application with their branch of service
CRSC is different from CRDP, and veterans can’t receive both simultaneously, even if they qualify for each program. If a veteran qualifies for both, they will automatically receive the benefit that gives them the most compensation.
If a veteran wants to change their benefit source, they’ll have to wait until the open election period, which typically occurs in January, and file a form to change it.
How much is a veteran pension?
VA pension is a needs-based pension program available to qualifying veterans. While you are not required to be retired to access your veteran’s pension, being at retirement age or receiving Social Security (SSI or SSDI) can help you qualify, meaning many retired veterans will use the program. The full list of eligibility requirements can be found here.
The amount of a veteran’s pension, or the Maximum Annual Pension Rate (MAPR) — the maximum amount of pension a veteran can be paid — is based on:
- Number of dependents
- If the veteran is married to another veteran who qualifies for a pension
- If their disabilities qualify them for housebound or Aid and Attendance benefits, which provides money for home health care services, if needed.
The VA adjusts MAPRs each year for cost-of-living changes.
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Income
A veteran’s income is how much they earn, including Social Security benefits, investment and retirement payments, and any income dependents receive. Some expenses, like non-reimbursable medical expenses or educational expenses, may lower the number.
Assets
Assets are real or personal property a veteran owns besides their primary residence, minus the mortgages. Personal property assets include investments, antique furniture, and boats. Assets don’t include the veteran’s car or basic home items.
Assets are added to a veteran’s income to create a net worth on which to assess their pension.
Dependents
A dependent, according to the VA, is a spouse, unmarried minor child, or a parent who relies solely on the veteran for care. The VA increases a veteran’s qualifying MAPR and gives them more opportunities for deductions to their net income depending on the number of dependents they have.
How Woods & Woods can help
At Woods & Woods, we focus on helping non-working veterans with service-connected conditions get individual unemployability benefits and, in some cases, increased ratings. We also help survivors of veterans receive their DIC benefits. If you think we can help you with your claim, call us today for a free case evaluation. You won’t pay us unless we take and win your case.
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Frequently asked questions
Yes, you can receive a 100% VA disability rating and military retirement through the Combat-Related Special Compensation (CRSC) or Concurrent Retirement and Disability Pay (CRDP) programs if you qualify.
CRDP and CRSC are two types of compensation for military retirees with disabilities, but they’re different in many ways.
A major difference is that a veteran must apply for CRSC through their branch of service whereas veterans eligible for CRDP should receive it automatically. CRSC is for combat-related disabilities, but CRDP also covers other types of service-connected health issues.
Additionally, to be eligible for CRDP, a veteran must have at least 20 years of service. Because of the way they’re calculated, CRDP payments tend to be larger.
Neil Woods
Neil Woods is a VA disability attorney and the owner and president of Woods & Woods. He received his law degree from Western Michigan University.
