Concurrent Retirement and Disability Pay (CRDP) in Virginia
Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive both military retired pay and Veterans Affairs (VA) compensation. CRDP gradually restores a retiree's VA disability offset, and qualified individuals are automatically enrolled without needing to apply. To qualify for CRDP, a person must be eligible for retired pay.
Generally, a person may be eligible for CRDP if they are:
- a regular retiree with a VA disability rating of 50% or greater;
- a reserve retiree with 20 qualifying years of service who have a VA disability rating of 50% or greater and who have reached retirement age (conventionally age 60, but special cases can reduce the required age);
- retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50% or greater;
- a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and they have a VA disability rating of 50% or greater.
In addition to monthly CRDP payments, an individual may also be eligible for a retroactive payment. The Defense Finance and Accounting Service (DFAS) will audit the person’s account to determine whether or not they are due retroactive payment, a process that requires researching pay information from both DFAS and VA.
Note that if DFAS finds that the person is also due a retroactive payment from the VA, they will forward an audit to the VA, who is responsible for paying any money they may owe the person. The retroactive payment date may go as far back as January 1, 2004 but can be limited based on the individual’s retirement date or when their disability rating first increased to at least 50%.
As CRDP is a restoration of retired pay, it is may be subject to division in a divorce action, as well as collection actions such as alimony, child support, and government debt. CRDP payments are taxable, and payments cease upon the death of the retiree.
Questions About Your Retirement? Let Us Help.
If you have legal questions or concerns about a retirement order in Virginia, do not hesitate to contact our team at Family Law Group We have years of practical and professional experience with private, government, and military benefits programs and can provide you the legal guidance you need as you examine your retirement plans.