Concurrent Receipt: Can You Get VA Disability and Retired Pay Together? (CRDP and CRSC)

The short version

The default rule is that you cannot collect full military retired pay and full VA disability compensation at the same time. To get VA compensation, which is tax free, retirees normally waive an equal dollar amount of retired pay. Two programs undo that offset for those who qualify. Concurrent Retirement and Disability Pay (CRDP) restores retired pay for retirees with a VA rating of 50 percent or higher and 20 years of service. Combat-Related Special Compensation (CRSC) pays a tax free amount for combat-related disabilities. You can have one or the other, not both.

Source: DFAS

Why can't I get both retired pay and VA disability by default?

Federal law, at Title 38 sections 5304 and 5305, sets a general rule against drawing both at once. To receive VA disability compensation, a retiree waives retired pay dollar for dollar in the same amount. Many retirees still choose the waiver because VA compensation is not taxed, so trading taxable retired pay for tax free compensation can come out ahead. CRDP and CRSC are the limited exceptions Congress built on top of that rule.

Source: DFAS

Who qualifies for CRDP?

CRDP restores the retired pay you would otherwise waive. For a retiree who did not retire under Chapter 61 for disability, you qualify if you are entitled to both retired pay and VA compensation and your VA rating is not less than 50 percent. If you retired under Chapter 61 for disability, you also need 20 or more years of creditable service. CRDP phased in fully by January 1, 2014, so eligible retirees can receive retired pay in full alongside VA compensation. It is taxable, and DFAS usually applies it automatically with no application.

Source: DFAS

Who qualifies for CRSC?

CRSC is a tax free payment for disabilities that are combat related. To qualify you must be entitled to or receiving retired pay, have a VA rating of at least 10 percent, waive VA pay from your retired pay, and file a CRSC application with your branch of service. The disability has to trace to combat or combat-like circumstances, which DFAS groups as armed conflict, hazardous duty, an instrumentality of war, or training that simulates war. Unlike CRDP, CRSC does not happen automatically. You apply, and your branch decides the combat-related percentage.

Source: DFAS

CRDP or CRSC: how do I choose?

You cannot receive both, so if you qualify for each, you take the one that pays you more. DFAS runs an open season each December when eligible retirees can switch from one to the other. CRSC is tax free, while CRDP is taxable, but the better fit depends on your rating, your years of service, and how much of your disability is combat related. DFAS provides a comparison, and it can help you see which program fits your account.

Source: DFAS

Common questions

Do I have to apply for CRDP?

Usually no. Because the VA shares your disability information with DFAS, CRDP is generally applied automatically when you meet the rules. If you believe you qualify but do not see it, you can submit a written claim.

Do I have to apply for CRSC?

Yes. You file a CRSC application with your branch of service, which determines the combat-related percentage before DFAS pays it.

Is either payment tax free?

CRSC is tax free. CRDP is taxable income. Your situation determines which comes out ahead.

Can I receive CRDP and CRSC at the same time?

No. You can receive only one. Each December, DFAS holds an open season to switch if the other would pay you more.

Does a rating below 50 percent qualify for CRDP?

No. CRDP generally requires a VA rating of 50 percent or higher, though TDIU can meet that threshold. CRSC can apply with a rating as low as 10 percent if the disability is combat related.

What if my disability is not combat related?

Then CRSC does not apply, but you may still qualify for CRDP if you meet the rating and service rules.

Where to get help

• DFAS Retired and Annuitant Pay, 800-321-1080.
• Your branch of service for CRSC applications.
• A VA-accredited representative or Veterans Service Organization for claims.
• The VA at 800-827-1000 for disability rating questions.

Verification Notes

• The CRDP 50 percent rating and 20 year rules, the CRSC 10 percent and combat-related categories, and the December open season are from DFAS pages (CRDP page updated July 17, 2023, CRSC page updated June 25, 2024). Re-verify before publish.
• Chapter 61 disability retirement has additional limits on the concurrent amount, and Reserve or Guard cases have age and points rules. Reviewer should confirm the current DFAS language for these situations.

Sources & links

• DFAS: Concurrent Retirement and Disability Pay (CRDP)
• DFAS: Combat-Related Special Compensation (CRSC)
• DFAS: Comparing CRSC and CRDP

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