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1 [1] (January 17, 2019)

handle is hein.crs/govyag0001 and id is 1 raw text is: Infrnnir gth lsia'v dbt sincr11 Updated January 17, 2019 Concurrent Receipt of Military Retirement and VA Disability Concurrent receipt refers to a veteran's simultaneous receipt of two types of monetary benefits: military retired pay from the Department of Defense (DOD) and disability compensation from the Department of Veterans Affairs (VA). Prior to 2004, existing laws and regulations stipulated that a military retiree could not receive both payments. As a result, military retirees with disabilities recognized by the VA would incur a retired pay offset (i.e., dollar-for-dollar reduction) by the amount of their VA compensation. The FY2003 and FY2004 National Defense Authorization Acts (NDAA) authorized, for the first time, two separate and distinct components of the concurrent receipt program, Combat Related Special Compensation (CRSC), and Concurrent Retirement and Disability Payments (CRDP). An eligible retiree cannot receive both Concurrent Retirement and Disability Payments (CRDP) and Combat-Related Special Compensation (CRSC). The common criteria that define eligibility for both of these programs is: (1) all recipients must be military retirees and (2) they must also be eligible for VA disability compensation. An eligible retiree cannot receive both Concurrent Retirement and Disability Payments (CRDP) and Combat-Related Special Compensation (CRSC). The retiree may choose whichever is most financially advantageous to him or her and may move back and forth between either benefit during an annual open season. In 2016, approximately one-third of all military retirees collecting retired pay were either receiving CRDP or CRSC for a total annual cost of $10.3 billion. Table I. Comparison of CRSC and CRDP CRSC CRDP Classification Qualified disabilities Special compensation Combat-linked disabilities Federal taxation Non-taxable Claim process Apply to branch of service Military retired pay Service-connected disabilities Taxable Automatic Source: Derived from Defense Finance and Accounting Service Concurrent Retirement and Disability Payments (CRDP) CRDP was first authorized in the FY2004 NDAA and was phased in over a 10-year period between 2004-2013. CRDP is sometimes referred to as restored retired pay, as it removes the previously required offset of VA payments. Under the offset, if a nominal member was eligible to receive $1,000 per month in retired pay from DOD, and $800 per month in VA disability pay based on their VA rating, the VA pay would offset $800 of the retired pay. The individual would receive $1,000 total ($800 in VA compensation and $200 in military retired pay). Under CRDP, an eligible retiree in this example would receive $1,000 in retired pay from DOD plus $800 from the VA for a total of $1,800. Military retirees with at least a 50% service-connected disability as rated by the VA are eligible for CRDP (see Figure 1). There are currently two groups of retirees who are not eligible for CRDP benefits. The first group is non- disability military retirees with service-connected disabilities (not combat-related) that have been rated by the VA at 40% or less. The second group includes disability (Chapter 61) retirees with service-connected disabilities and with less than 20 years of service. Figure I. CRDP Eligibility Flowchart CRDP Eligibiity A(ctive- Iii retIiree w 110 VOSh, Re- twIe iIIIw2Oqal I IinYOY Dirabilit Ch-)p~64 fI r and ~ ~ ~ ~ ~ ~~ Pi rtrmnaeTAtfe? a prrto2Qvyears Source: CRS Notes: Member refers to a retired member of the Armed Forces. Temporary Early Retirement Authority (TERA) retirees are those retired with less than 20 years of service due to force management requirements. Disability ratings are awarded in 10% increments. CRDP Recipients and Costs As of September 30, 2017, there were 577,399 CRDP recipients at an annual cost of $11.4 billion. The Congressional Budget Office has previously estimated that eliminating CRDP would save $139 billion between 2018 and 2026 (CBO, Dec. 8, 2016). CBO estimates that extending the program to those with a VA disability of 40% or less would cost $30 billion over a 10-year period and that further extending the benefit to Chapter 61 retirees would cost approximately $5.8 billion over a 10-year period. Combat Related Special Compensation https:I/crsreportstcongress~gon

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