April 22, 2004 (Updated January 15, 2005)
Concurrent Disability Payments (CDP) now called Concurrent Retirement and Disability Payments (CRDP)
Update November 18, 2005 - The Defense Finance and Accounting Service (DFAS) has sent a letter to customers who are drawing military retired pay to advise those who also are receiving Concurrent Retirement Disability Payments (CRDP) that the two payments are being combined. This will give them a single chunk of retired pay from DFAS and a second payment from the VA. Accordingly, the Retired Account Statement will show the VA Waiver reduced by the amount of CRDP received. DFAS emphasizes that the regular VA disability payment will continue and it will remain tax free. Some beneficiaries could see a reduction in net take-home pay, however, because the CRDP in the regular retired pay incurs tax withholding at the same rate as the rest of their retired pay. Before this change, it was withheld at a straight 10 percent rate for all retirees.
Update January 15, 2005 - With 15,000 to 16,000 disabled military retirees awaiting the decision, senior Pentagon officials continue a lengthy review of a proposal to give full concurrent receipt of retired and disability benefits to those who are considered 100 percent disabled because they are unable to work. Defense personnel sources, speaking on condition of anonymity, said they expect the final decision will, in fact, be to provide full retired pay and disability benefits to retirees who are rated 100% disabled solely because they are unemployable. But they stressed that no final decision has been made even though defense officials informed the White House's Office of Management and Budget in a 21 DEC letter that the Defense Department intends to pay the benefits. When queried one senior official who was unwilling to predict when a decision might be made said, "All signs indicate that is the direction we are headed, but a lot of questions remain to be answered".
Update December 2004 - Effective January 1, 2005, military retirees who are 100% service-connected disabled will receive both their full retired pay and the full VA disability pay, without the 10-year phase-in period. This does not apply to those rated 100% due to unemployability, nor to those who retired with less than 20 years service.
According to a Defense Finance and Accounting Service (DFAS) website posting, Concurrent Receipt or Concurrent Disability Pay (CDP) is now called Concurrent Retirement and Disability Payments (CRDP); and, although the name has changed, the program has not.
DFAS said it paid 144,098 retirees their CRDP payments on time on February 2, 2004 and that it paid 2,620 retirees whose retired pay is calculated based on a percentage of disability. Due to the complexity of the calculation, these retirees received their electronic fund transfer deposits on February 13, 2004. Retirees who receive hard-copy checks in the mail have been issued payments as well and should allow for mailing time.
On-going CRDP payments will be paid on the first business day of each month. These payments will continue without the need for further action from eligible retirees.
In the future, CRDP rates will automatically
increase or decrease based on the percentage of disability reported by the VA.
National Guard and
Retirees from the National Guard or the Reserve with VA disability ratings of 50% or better, no matter what they had been told in the past, may still qualify for Concurrent Retired and Disability Pay (CRDP).
Until recently Guard and Reserve retirees were told they had to have a minimum of 7200 points to qualify for CRDP. Specifically any retired reservist or guardsman that has "20 Good Years" and meets the remaining eligibility requirements is eligible to get their CRDP benefits just like their active duty counterparts. Eligibility for the CRDP includes all chapter 61
medically retired personnel with twenty years of service whether their service was twenty or more years of active duty or twenty or more GOOD YEARS for Reserve Retirement (section 12732 of US Code 10).
A GOOD YEAR is one in which the retiree had earned a minimum of 50 points. Guard or Reserve retirees, who believe they qualify for CRDP but are not currently receiving it or had been turned down in the past, should take the following steps:
· Gather all of your documentation including your letter of Retirement Eligibility ("20-Year Letter") and your last point summary. · Call DFAS at the toll free number 1-800-321-1080 to determine the reason for nonpayment.
[Source: NAUS Update 9 APR 04]
Civil Service Eligibility
According to DFAS officials, civil service retirees who
combined their military time with their civil service time in order to qualify for a civil service retirement are not eligible for Concurrent Retirement & Disability Pay (CRDP).
On the other hand, those who combined their military time with their civil service time in order to enhance their
civil service retirements may be eligible for CRDP. Officials point out that those who are eligible will have to coordinate with the Office of Personnel Management to reverse the waiver of retired pay. If reversed, the
retired member may incur a debt to the government resulting from an overpayment.
The CRDP law applies to retirees who have a VA-rated, service-connected disability of 50 percent or more. Individuals who retired for disability rather than under the regular retirement law must have at least 20 years of service. For additional info refer to
Senator Harry Reid D (NV) has offered Legislation to CRDP. The Reid amendment (S.Amdt. 3175) to the Senate version of the National Defense Authorization Act for 2005 would repeal phase-in of concurrent receipt of retired pay and veterans' disability compensation for veterans with service connected disabilities rated as total.
This would eliminate the 10 year phase in of CRDP for the 100% Disabled, bringing these individuals to 100% full concurrent receipt of VA disability pay and military retired pay in FY 2005. While the original format of the proposed amendment included
broadening CRDP to include the 40% disabled and the Chapter 61 Medical Retirees, it is anticipated that the elimination of the phase for the 100% Disabled will probably be the only one to carry forward into the Senate
NDAA. [Source: Armed Forces News Issue & NAUS Leg Up 11 JUN 04]
Combat-Related Special Compensation (CRSC)
The new guidance addresses two previously unresolved issues - namely, Special Monthly
Compensation (SMC) and compensation for Individual Unemployability (IU). Both issues will be assessed after the Services have determined which of the applicant's
disabilities are deemed combat-related.
In the case of SMC, the Services will have to resolve whether any of the combat-related disabilities constitute the grounds for the Special Monthly Compensation award. To make these determinations, the CRSC processing branches will be assisted by the Department of Veterans Affairs. The VA will provide descriptions of SMC criteria and will provide counsel in unusual situations.
Individual Unemployability determinations will be based on the retiree's overall combat-related disability percentage. If the Services award CRSC at 60 percent or greater, and the applicant also has been determined by the VA to be unemployable, then CRSC will be paid at the 100 percent rate, retroactive to January 1, 2004, as applicable. to swift payments once the awaited policy directive regarding CRSC processing is received.
Additional details regarding CRSC processing,
[Source: MOAA Legislative Update (email@example.com)
Friday, April 30, 2004 12:42 PM]
The new application dated April 2004 has been released, but service boards responsible for processing CRSC applications have said they will accept applications from all eligible retirees using older forms. A copy of the application form is available from:
Applicants are advised to simply ignore any references to disabilities payable only for 60 percent and above or to the requirement for a Guard/Reserve retiree to have 7200 or more retirement points. Those criteria were applicable for payments in 2003, but no longer apply as of 1 Jan 04.
Additional information can be found at the web site shown below, but use the newer application from the above web site:
Mailing Addresses for
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
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
United States Air Force Personnel Center
Disability Division (CRSC)
550 C Street West, Suite 6
Randolph AFB, TX 78150-4708
U.S. Coast Guard
4200 Wilson Boulevard
Arlington, VA 22203-1804
Director, Commissioned Personnel Center
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