One of the most misunderstood areas of veteran benefits is whether you can receive 100% VA disability compensation and military retirement pay at the same time. For decades, the answer was a hard no. Veterans were forced to waive a portion of their earned retirement pay to receive VA disability compensation.
That changed with the creation of Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). Today, thousands of retired veterans lawfully receive both payments. However, eligibility depends on how you retired, your VA rating, and whether your disabilities are combat-related.
As one military retirement expert explains, “The rules aren’t designed to be simple, but when you understand them, they can be extremely valuable.”
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Can You Receive Both?
Yes, but only under specific circumstances.
Veterans may receive both 100% VA disability compensation and military retirement pay if they qualify for CRDP or CRSC. If neither applies, your retirement pay is typically reduced (offset) by the amount of VA compensation you receive.
Understanding VA Disability vs. Military Retirement Pay
VA disability compensation and military retirement pay are governed by different laws and paid by different federal systems.
- VA Disability Compensation is tax-free and paid for service-connected disabilities.
- Military Retirement Pay is taxable income earned after completing sufficient service.
Historically, Congress prohibited “double dipping,” meaning veterans had to choose one or the other. That policy changed in the early 2000s.
What Is Concurrent Retirement and Disability Pay (CRDP)?
CRDP allows eligible retirees to receive full military retirement pay AND VA disability compensation at the same time, without any offset.
CRDP was introduced in 2004 and phased in gradually. Today, it applies automatically for most eligible retirees.
CRDP Eligibility Requirements
You may qualify for CRDP if all of the following apply:
- You are a regular military retiree, and
- You have a VA disability rating of 50% or higher, and
- You receive military retirement pay (active duty, reserve, or TERA)
You do not need to apply for CRDP. If eligible, it is automatically administered by Defense Finance and Accounting Service (DFAS).
A retired Army finance officer notes, “CRDP restores retirement pay that used to be waived. It doesn’t replace VA compensation it stacks on top of it.”
What Is Combat-Related Special Compensation (CRSC)?
CRSC is a separate program designed for retirees whose disabilities are directly related to combat or combat-like conditions.
Unlike CRDP, CRSC is not automatic and must be applied for through your branch of service.
CRSC Basic Eligibility
All of the following must be true:
- You are retired and entitled to military retirement pay
- You have a VA disability rating of at least 10%
- Your retirement pay is currently offset by VA disability pay
Additionally, one of these must apply:
- 20+ years of active, Guard, or Reserve service
- Medical retirement under Chapter 61 (30% or higher DoD rating)
- Retired under TERA
- On TDRL or PDRL
CRSC pays back some or all of the offset as tax-free compensation.
According to a Navy retirement advisor, “CRSC can be more valuable than CRDP for combat veterans because it’s completely tax-free.”
CRDP vs. CRSC: Key Differences
| Feature | CRDP | CRSC |
|---|---|---|
| VA Rating Required | 50% or higher | 10% or higher |
| Combat Requirement | No | Yes |
| Application Needed | No | Yes |
| Tax-Free | No (retirement pay taxable) | Yes |
| Paid By | DFAS | Military branch |
| Can Receive Both? | No | Must choose one |
Veterans eligible for both must choose the program that pays more, and DFAS usually makes this determination annually.
How 100% VA Disability Fits Into the Picture?
A 100% VA disability rating does not automatically guarantee concurrent payments. What matters is how you retired and which program applies.
Common Scenarios
- 100% VA + Regular Retirement + 50%+ VA Rating → CRDP applies
- 100% VA + Combat-Related Disabilities → CRSC may apply
- 100% VA but retired with less than 20 years (non-medical) → Offset likely applies
A veterans law attorney explains, “The VA rating alone doesn’t decide this retirement classification does.”
How Many Payments Will You Receive?
Depending on eligibility, you may receive:
- Two payments (VA compensation + retirement pay), or
- Three payments (VA compensation + reduced retirement pay + CRSC reimbursement)
In some CRSC cases, the structure varies, but VA compensation is always paid separately.
Back Pay and Retroactive Compensation
You may qualify for retroactive CRDP pay if:
- Your VA rating was increased to 50% or higher, and
- Your retirement pay was previously reduced
Back pay can sometimes date back to 2004, depending on circumstances.
CRSC back pay is limited by a six-year statute of limitations, making timely application critical.
How to Apply (or Not Apply)?
- CRDP: No application required
- CRSC: Apply through your military branch (Army, Navy, Air Force, Marines, Coast Guard)
Each branch has its own CRSC board and documentation requirements.
Final Thought
Yes, it is absolutely possible to receive 100% VA disability compensation and military retirement pay at the same time, but only if you qualify under CRDP or CRSC rules.
Understanding the difference between these programs can mean thousands of dollars per year, reduced taxes, and long-term financial stability. If you’re unsure which applies to you, reviewing your retirement status and disability ratings is essential.
As one retired Marine put it, “This isn’t about gaming the system it’s about finally getting paid what you earned.”
FAQs
Can I receive 100% VA disability and retirement pay together?
Yes, if you qualify for CRDP or CRSC.
Do I need to apply for CRDP?
No, CRDP is automatic if you’re eligible.
Is CRSC tax-free?
Yes, CRSC payments are tax-free.
Can I receive CRDP and CRSC at the same time?
No, you must choose the program that pays more.
Does a VA rating under 50% qualify for CRDP?
No, CRDP requires a minimum 50% VA rating.
