Overview
Concurrent Retirement and Disability Payments (CRDP)
The 2004 National Defense Authorization Act (NDAA) included provisions for a ten-year plan to eliminate the offset of retired pay for VA disability compensation for those with 50-100% disabilities. All retirees (except medical disability retirees with less than twenty years of service) who have VA disability ratings of 50% or higher will have military retired pay offsets phased out over a ten-year period, starting January 1, 2004. The majority of the retired pay offset will be eliminated in six years.
The new law went into effect Jan 1, 2004 and most eligible retirees are receiving payments. All compensation will be paid retroactive to January 1, 2004.
Combat-Related Special Compensation (CRSC)
The FY 2003 National Defense Authorization Act (NDAA) (P.L. 107-314, sec. 636) authorized CRSC for certain retirees with combat- or operations-related disabilities. The FY 2003 authority provided combat related special compensation (CRSC) to those retirees with qualifying disabilities rated at 60% or higher, and to those retirees with disabilities (regardless of disability level) associated with the award of a Purple Heart decoration.
The 2004 NDAA expanded CRSC to include all combat- or operations-related disabilities, effective January 1, 2004-regardless of disability level (10% to 100% ratings), effective January 1, 2004.
Selection
Retirees eligible under both concurrent receipt and CRSC criteria will have to choose between the two forms of compensation. Recipients will have the option each year to choose the more advantageous option since concurrent receipt (CRDP) payment amounts will increase each year for the next 9 years. The Defense Finance and Accounting Service (DFAS) will develop this election system. Applicants also have the option of allowing DFAS to automatically pay the higher amount.
Q&A table of contents
Eligibility Requirements
Who is eligible for CRDP and CRSC?
All retirees who served long enough to qualify for a regular, non-disability retirement (typically a retirement based on serving twenty years) will qualify, depending on their type of disability and their disability rating:
CRDP Eligibility:
--Retirees with VA disability ratings from 50% to 100% are eligible for concurrent retired disability payment (CRDP). These payments will be phased in over 10 years, beginning January 1, 2004. As of January 1, 2014 these disabled retirees will receive their entire retired pay and their full VA compensation.
--The only retirees not eligible for CRDP are those retirees who retired for medical reasons (under chapter 61 of USC 10) with less than 20 years of service.
CRSC Eligibility:
--Last year's Combat-Related Special Compensation (CRSC) rules, which limited eligibility to disabilities associated with a Purple Heart and combat- or operations-related disabilities of 60-100% has been expanded to include all combat-related disabilities from 10-100%, regardless of Purple Heart status.
--Combat- and operations-related disabilities that qualify have an assigned medical diagnosis code from the VA Schedule for Rating Disabilities (VASRD) that was incurred either:
• As a direct result of armed conflict;
• While engaged in hazardous service (e.g., flight, diving, parachute duty);
• In the performance of duty under conditions simulating war (exercises, field training);
• Through an instrumentality of war (combat vehicles, weapons, Agent Orange, etc.)
Note: Certain disabilities will be presumed to be combat-related when the VA disability rating form indicates that the VA rating for the disability is based on one of these presumptions: disabilities rated by the VA on the basis of exposure to radiation, mustard gas or lewisite, Agent Orange, and those associated with Persian Gulf service. Post-Traumatic Stress Disorder (PTSD) must be evaluated by the member's Service to determine if it is combat-related.
Certain disabilities will be presumed to be combat-related when the VA disability rating form indicates that the VA rating for the disability is based on one of these presumptions: disabilities rated by the VA on the basis of exposure to radiation, mustard gas or lewisite, Agent Orange, and those associated with Persian Gulf service. Post-Traumatic Stress Disorder (PTSD) must be evaluated by the member's Service to determine if it is combat-related.
--The retiree's parent Military Service will determine which disabilities qualify under the above criteria. Retirees must apply to their parent Service. CRSC will not be paid for disabilities that are not combat- or operations-related.
Toqualify for either CRDP or CRSC the retiree must have signed a VA waiver of retirement pay and be receiving VA disability compensation in lieu of some or all of his/her retired paycheck. Retirees are not eligible if they have waived military retired pay to credit military service toward their civil service retirement (unless they subsequently unbundled their retirement), or for any other reason, other than to receive VA disability compensation..
Are Reservists and National Guard eligible?
Yes, all Reservists and National Guard receiving longevity retirement--twenty "good years" for retirement purposes--will be eligible for both CRDP and CRSC. The previous CRSC requirement to have at least 7200 retirement points no longer applies as of January 1, 2004. Grey area retirees become eligible for both programs at age sixty when they begin to receive retired pay.
Are Temporary Early Retirement Authority (TERA) retirees eligible?
TERA retirees are eligible for CRDP, but they are not eligible for CRSC (CRSC requires 20 years of service).
Are Chapter 61 retirees (medical retirees) eligible?
Chapter 61 retirees who are also eligible for longevity retirement (20 years or more for retirement purposes) will be eligible for CRDP and CRSC. However, their entitlement will be calculated as if they had received a non-disability retirement. They will not be reimbursed to the level of their service-awarded disability retirement.
Chapter 61 retirees with fewer than 20 years of service are not eligible for either program at this time. However, MOAA is continuing to work to include medical retirees with less than twenty years.
Are surviving spouses eligible?
Neither CRDP nor CRSC applies to survivors. The new law deals only with the offset of retired pay from VA disability compensation. Widows and widowers of service members have their Survivor Benefit Plan (SBP) annuity offset by their Dependent Indemnity Compensation (DIC). Survivors' compensation must be separately addressed, and MOAA supports eliminating the SBP/DIC offset. While this recent "concurrent receipt (CRSC/CRDP)" legislation does not directly affect survivors, the principle affecting their offset is similar.
However, if the military member filed for CRSC and then died prior to getting a decision, the board will still review the application, and if approved, award the estate CRSC until the date of date.
Are former spouses eligible?
CRDP restores retired pay, and under the Uniformed Services Former Spouses Protection Act (USFSPA) retired pay is considered marital property subject to division in a divorce. Therefore, former spouses who have been awarded a portion of the service member's retired pay should receive an increase in the portion as the member's retired pay is increased under CRDP.
However, since CRSC is considered "special compensation" and not retired pay, it is not subject to the USFSPA rules.
CRSC Application Process
This section only applies to CRSC since no application is needed for CRDP.
Will I automatically receive a CRSC application?
The Services will not send out applications without a request. You can obtain an application form on the DoD web site by clicking here.
Login is required and retirees can login, despite the security language; or you can obtain an application through our website www.moaa.org.
If you do not have access to the Internet, you may request an application from the Retired Affairs Office at your nearest military installation. Also, MOAA members can request a form from MOAA's Member Service Center (800-234-6622).
Where can I get help filling out the CRSC application?
Instructions are provided with the application. DoD provides additional guidance through their website. Some of the Military Services have established toll free phone numbers or websites. These are listed on the back of this brochure
MOAA members can call our Member Service Center (800-234-6622) for assistance.
What documentation will I need?
Include any documentation that you feel is relevant to your case, including: your DD 214; pertinent pages from your VA or service medical record; complete final VA ratings determinations (award letters); Purple Heart decoration citations; and, any other documentation that adds value to the nature of your combat related injury or illness.
The DoD guidance does not provide an exhaustive list of relevant and appropriate documentation. What the guidance does say is that the decision as to whether a disability is combat related will be made on the preponderance of available documentary information provided-and quality matters more than quantity.
Last, please do not send original documents. Send copies since original documents will not be returned. Documents do not need to be notarized.
What if I don't have the required documentation?
Complete the application as best you can and send it to your Military Service. Your parent service has made arrangements with the Department of Veterans Affairs (VA) and the National Personnel Records Center (NPRC) to obtain needed documentation. But, understand that this may increase the amount of time required to process your application.
Where do I mail the CRSC application?
See the back of this brochure for addresses, which also appear on the application form. Applications must be mailed. They cannot be submitted electronically.
Will I be able to check on the status of my CRSC application?
Each Military Service manages their own process and most will allow you to check the status of your application either via their toll free number or their website. Unfortunately, we can't check the status of individual applications.
If I applied under the 2003 rules, but my disability was deemed less than the required 60% threshold, do I need to re-apply using the new CRSC application?
No. If you have already applied for CRSC you do not need to submit a new application. Similarly, if you are eligible for Dependent Compensation, Individual Unemployability, or Special Monthly Compensation you do not need to apply to have these included in your CRSC. DoD will automatically make the adjustments, as appropriate.
How is my CRSC application reviewed?
Your parent service will evaluate your application to determine if you meet the basic eligibility under the prior 2003 rules, or the new 2004 expanded guidance.
Once they determine which provisions you are eligible for, they will further evaluate your application to determine if your disability meets the criteria needed to be a combat related disability (combat, hazardous duty, training, instrumentality of war). Caseworkers making these decisions have experience making these same decisions for service medical retirements-which involves similar decision logic.
The problem often becomes authenticating the disability as combat related. Caseworkers need documentation to base their decisions on-simply explaining what happened to cause your injury is not sufficient. Unfortunately, many retirees do not have access to their complete medical records, and more significantly, medical records do not reflect how the injury or illness occurred-usually medical records document the injury and treatment. This is especially a problem for those with orthopedic injuries caused by jump status (or similar disabilities from other hazardous duty) and yet the medical documentation does not reflect that parachute jumps caused the injury.
It is very important that you make the best logical case you can with your explanation and supporting documentation.
If my application is denied, can I appeal the decision?
Yes. Your parent military service will explain why your application was disapproved, and they will provide the appeal process. The appeal process involves either providing additional documentation to your parent service to reconsider your application, or an application for correction of military record.
An application for correction of military record is not the daunting task it may seem. It involves completing a DD form 149 and attaching documentation you feel makes your case. Most importantly, a panel of specialists not associated with your original CRSC decision will make the decision on your correction of military record application (although they may ask for an "expert opinion" from them). This appeal process would be an independent review.
Can I get my disability reevaluated by the VA?
Those who want to have their VA disability reevaluated should send a letter to the VA office that issued their most current rating decision. If they are not sure what office issued their rating decision contact the VA at 1-800-827-1000.
Is there any way to increase or recalculate my years of service?
If you feel that your military records have inaccurate information, you must request a correction to your military record through your Military Service.
Payment Process
How much compensation will I receive?
For those retirees eligible for CRDP (50-100%), there will be a ten-year phase-out of the disability offset.
For 2004, qualifying retirees have seen their retired pay increase by these flat monthly amounts:
$750 for 100%;
$500 for 90%;
$350 for 80%;
$250 for 70%;
$125 for 60%;
$100 for 50%.
The remaining retired pay offsets will then be phased out over the following nine years. In 2005, offsets will be reduced by 10%; 20% in 2006: 30% in 2007; and so on. By 2014, disabled retirees with 50% and higher ratings will be entitled to full concurrent receipt of military retired pay and VA disability compensation. Please see Attachment B for examples.
If you qualify for CRSC, the amount of compensation you receive will be equal to the amount of VA disability compensation allowable for those disabilities determined to be combat-related, up to the total amount of your retired pay offset.
Will CRDP and CRSC take into account dependent compensation?
Under CRDP, your compensation in the first year will not vary from the flat amounts listed above. However, in 2005 and beyond, allowances for dependents will be included to calculate the amount of increase in retired pay you will receive for that year.
If you receive a CRSC payment, it will include whatever amount of dependent compensation associated with your disability rating. Dependent compensation will be paid retroactive to January 1, 2004. Please see Attachment C.
Will CRSC and CRDP take into account compensation for Individual Unemployability (IU)?
Under CRDP, your compensation in the first year will not vary from the flat amounts listed above. However, in 2005 and beyond, IU will be included in calculating your overall compensation.
For CRSC, IU determinations will be based on the retiree's overall combat-related disability percentage. If your CRSC disability, or combination of CRSC disabilities, is at least 60% and you are also rated unemployable, then you will be paid at the unemployable (100%) rate; and, if eligible, the payment will be retroactive to June 1, 2003.
Will CRSC and CRDP take into account Special Monthly (SMC) compensation?
Under CRDP, your compensation in the first year will not vary from the flat amounts listed above. However, in 2005 and beyond, SMC will be included in calculating your overall compensation.
In the case of CRSC, your parent service will determine if your special monthly compensation is attributable to combat related disabilities. If so, your CRSC payment will include the SMC amount. The VA will provide descriptions of SMC criteria and will provide counsel in unusual situations. Compensation for SMC will also be payable retroactive to June 1, 2003.
I received a disability retirement from my Military Service after 20 years of active duty. How will this affect my compensation?
You will still be eligible for CRDP and/or CRSC, but there probably will be some adjustments to the amount you receive. Your Military Service awarded you a medical disability retirement (chapter 61), which probably provides you extra pay for your disability. Your CRDP/CRSC could be reduced based on the amount of retired pay you would have received had you retired for length of service (longevity), without any disability. This is to preclude two payments (from the VA and your Service) for the same disability.Please see Attachment A.
How will my Special Compensation for Certain Severely Disabled Retirees (SCSD) (i.e. "old special compensation") be affected?
SCSD payments expired on 31 December 2003 since the first increment of concurrent receipt will be bigger than SCSD for all recipients. SCSD was paid to retirees with at least 20 years of Regular service who incurred VA disability ratings of 60% or higher within 4 years after retiring. This was modest compensation (for those rated 100% is was $325 a month; 90% was $225; down to $50 for 60% ratings.
How will I be paid?
CRDP will be an increase to your retired pay-you won't receive a separate payment.
However, CRSC is a separate payment, deposited to the same account where you receive your retired pay.
In no event will your increase in retired pay under CRDP, or your separate CRSC payment exceed the amount of your current offset of retired pay for VA disability compensation.
When will my compensation begin?
CRDP is being automatically added to the retired paychecks of eligible retirees. If you have not yet begun to receive CRDP, you may wish to contact the Defense Finance Accounting Service (DFAS).
CRSC applications are being processed in the order they are received. Many CRSC applicants are now receiving payments. Applications were taking six months or longer when the process started, but processing times have improved as the services add additional staff and refine their procedures.
There have been delays of as many as four months from the time the Service approves the CRSC application and the time DFAS starts the payments. DFAS is working to improve their process.
DFAS is anticipates beginning IU, SMC, and Dependent compensation payments with August 2004 retired paychecks. However, back pay for previous months may take longer to process and disburse.
Will the pay be retroactive?
All compensation will be retroactive to the date you became eligible for either CRDP or CRSC. Retroactive payments should follow this schedule for applicable retirees:
CRDP: All payments retroactive to January 1, 2004
CRSC:
- Active Duty retirees with 60-100% disabilities: retroactive to June 1, 2003
- Active Duty retirees with Purple Heart and 10-100% disabilities: retroactive to June 1, 2003
- Active Duty retirees with 10-40% disabilities: retroactive to January 1, 2004
- All eligible Reserve retirees-retroactive to January 1, 2004
- Dependent compensation retroactive to January 1, 2004
- IU retroactive to June 1, 2003
- SMC retroactive to June 1, 2003
Is the compensation taxable?
CRDP is taxable. Originally, it was taxed at a flat 10% rate to expedite payments. DFAS will adjust the taxation to reflect the same tax rates applicable to your regular retired pay. Medical retirees with non-taxable retirements will not be taxed on CRDP.
CRSC is not taxable based on current law regarding taxability of disability income (26 U.S.C. 104).
Concurrent Receipt and CRSC
Should I elect Concurrent Receipt or CRSC?
It depends on your personal situation. CRSC benefits are paid in full immediately, whereas concurrent receipt benefits will be phased in for the next ten years. CRSC benefits are non-taxable, while concurrent benefits may or may not be taxable.
Retirees eligible for both programs will be able to make a yearly election (during an open season) based on which option is more beneficial to them. DoD will need to announce the procedures for both the expanded CRSC program and the "open season."
When can I apply for CRSC (10-50%)?
DoD will not establish procedures for 10-50% disabled retirees to apply for CRSC until this provision becomes law. The program for these retirees goes into effect January 1, 2004. Keep a close eye on the Legislative Update for further details as they develop.
How are pending CRSC claims affected?
Pending CRSC claims will be processed as usual and will continue to be paid retroactive to June 1, 2003. DoD has not yet announced how the open season option will interact with current CRSC claims, but that is one of the many issues MOAA will raise with them over the next several months.
Looking Forward
Why is CRDP being phased in over ten years?
The phase-in is heavily front-loaded with almost all retired pay restored by 2010.
However, it is also important to keep in mind that concurrent receipt is a very expensive program-CRDP will cost an estimated $22 billion over ten years. In order to create a program that legislators see as affordable and would therefore support, we have had to accept a gradual phase-in of payments. By spreading the budget costs over ten years, we were able to reach a solution that offers more compensation to many more disabled retirees than any "immediate" solution could have.
Why is MOAA supporting less than full concurrent receipt?
MOAA believes that this compromise represents a great step forward for retirees with VA disabilities, as it will offer full compensation to the most severely disabled and combat-wounded retirees.
MOAA got the best deal it could with Congress. Most legislative battles are won one step at a time, and concurrent receipt is no exception. We got a very modest foot in the door ($50-$325 monthly special compensation) for certain severely disabled retirees a few years ago, expanded that, added Combat-Related Special Compensation, and now we have expanded CRSC and have "real" concurrent receipt. We are going to keep pushing--but this is a big step along the way.
It's important to recognize that slow, steady progress is a much better route to progress on Capitol Hill than an "all or nothing" approach. For example: If we had rejected compromise, then DoD and the House leadership could have gone ahead with no concurrent receipt in the Defense bill. When asked, they would say, "We tried to address it, but they refused our $22 billion plan." Next year, we would be back to square one.
Alternatively, by supporting a proposal to provide concurrent receipt to all those with disabilities of 50 percent or greater, we can get money in retirees' pockets sooner rather than later. That also makes it easier for us to go to Congress in the future and say, "If it's good enough for 50 percent and above, it's good enough for 30 and 40, too." If we get a foot in the door, we can expand it into full concurrent receipt. And the more we get enacted, the lower the cost hurdle for the remaining fix will be.
What is the MOAA position on the commission to study the VA?
The law enacting CRDP also calls for the formation of a special commission to review the VA disability system and recommend any needed changes. Of its 13 commissioners, at least 7 will be highly decorated combat veterans. The House of Representatives will appoint four; the Senate four; and the Pentagon and VA will appoint the remaining five.
MOAA believes it is unrealistic to expect that any program will never come under review. The VA system has been studied in the past. We believe that the VA rating system should be able to stand up to scrutiny.
What does this mean for H.R. 303 and discharge petition?
Technically speaking, the discharge petition is still alive, because H.R. 303 has not been enacted as law. Both will expire with the close of the 108th Congress (late 2004). Realistically speaking, however, most legislators will consider this legislation as satisfying concurrent receipt interests for the time being. Some supporters in Congress have stated that the compromise does not go far enough, and we hope to draw on their support for future action.
What is MOAA going to do to expand concurrent receipt?
Although the legislation enacted in the 2004 NDAA is a big step forward, our goal remains full concurrent receipt. Our first priority is to monitor implementation of the 2004 authority. We need to ensure that retirees newly eligible for CRSC are aware of their ability to apply, and that dual-eligible retirees have all the resources they need to make an informed decision.
Concurrent receipt is very much alive in the 108th Congress. In fact, in the Senate's version of the FY 2005 defense bill, provisions exist to eliminate the ten-year phase in of retired pay for those retirees with 100% disabilities. This would mean that 100% disabled retirees will see their retired pay increased immediately-if this provision is enacted in the final defense bill. While the House's version of the FY 2005 defense bill did not include any provisions for concurrent receipt, many feel the Senate provision will prevail.
With the exception of the Senate's provision to provide immediate relief to all 100% disabled retirees, most members of Congress want to defer any further action on concurrent receipt until they see the report from the upcoming review of the VA disability system. The review, which was mandated by the FY 2004 Defense Authorization Act, will probably run into 2005, precluding any chance for action before then.
After that study is completed, however, legislators will lose one of their major excuses for delay. At that point, chances will be much improved to expand on the partial victories won late last year.
In the future, we're going to continue to press for expansion of concurrent receipt eligibility to those with non-combat related disabilities of less than 50%, and to medical retirees with fewer than 20 years of service.
Full VA compensation charts.
Certain disabilities will be presumed to be combat-related when the VA disability rating form indicates that the VA rating for the disability is based on one of these presumptions: disabilities rated by the VA on the basis of exposure to radiation, mustard gas or lewisite, Agent Orange, and those associated with Persian Gulf service. Post-Traumatic Stress Disorder (PTSD) must be evaluated by the member's Service to determine if it is combat-related.
Contact Information and Web Links
Certain disabilities will be presumed to be combat-related when the VA disability rating form indicates that the VA rating for the disability is based on one of these presumptions: disabilities rated by the VA on the basis of exposure to radiation, mustard gas or lewisite, Agent Orange, and those associated with Persian Gulf service. Post-Traumatic Stress Disorder (PTSD) must be evaluated by the member's Service to determine if it is combat-related.
Defense Finance Account Service (DFAS): 1-800-321-1080
DoD site for CRSC
CRSC Application
MOAA web sites:
Concurrent Receipt News
CRSC Summary
MOAA Members Service Center (for MOAA members):1-800-234-6622
Navy/Marine Corps CRSC Information
Mailing Addresses for CRSC Applications:
ARMY:
U.S. Total Army Personnel Command
U.S. Army Physical Disability Agency (CRSC)
c/o The Adjutant General Directorate
2461 Eisenhower Avenue
Alexandria, VA 22331-0470
1-866-281-3254
(703) 325-5163
http://www.crsc.army.mil/
NAVY AND MARINE CORPS:
Department of Navy
Naval Council of Personnel Boards
Combat-Related Special Compensation Branch
720 Kennon Street S.E., Suite 309
Washington Navy Yard, DC 20374-5023
1-877-366-2772
http://www.hq.navy.mil/ncpb/CRSCB/combatrelated.htm
AIR FORCE:
United States Air Force Personnel Center
Disability Division (CRSC)
550 C Street West, Suite 6
Randolph AFB, TX 78150-4708
1-866-229-7074
http://ask.afpc.randolph.af.mil/default.asp
COAST GUARD:
Commander (adm-1-CRSC)
U.S. Coast Guard
Personnel Command
4200 Wilson Boulevard
Arlington, VA 22203-1804
(800) 772-8724
http://www.uscg.mil/hq/psc
NOAA CORPS:
Director, Commissioned Personnel Center
SSMC3/Room 12100
1315 East West Highway
Silver Spring, MD 20910
PUBLIC HEALTH SERVICE:
United States Public Health Service
Division of Commissioned Personnel
Office of the Director, Room 4A-15
5600 Fishers Lane
Rockville, MD 20857-0001
