If you're a military retiree with a VA disability rating, you need to understand this: for decades, the government forced retirees to choose between their full retirement pay or their VA disability compensation. You couldn't get both.

That changed with CRDP (Concurrent Retirement and Disability Pay) and CRSC (Combat-Related Special Compensation). Most retirees can now receive both, but you need to understand which program you qualify for and how to apply.

Here's the problem: most retirees don't even know these programs exist. The military doesn't automatically enroll you. If you don't apply, you don't get paid. We're talking about thousands of dollars per year left on the table.

Let me break down exactly how this works, who qualifies, and how to get every dollar you're entitled to.

The Old System: The VA Offset (Still Affects Some Retirees)

First, you need to understand the default system that screws retirees over.

How the VA Offset Works

When you retire from the military, you receive:

Military retirement pay (based on years of service and rank)

When you have a service-connected disability, the VA awards:

VA disability compensation (based on disability rating percentage)

Sounds like you should get both, right? Wrong.

By default, the VA deducts your VA disability amount from your military retirement pay. This is called the "VA offset" or "waiver."

Example:

Military retirement pay: $2,500/month
VA disability compensation (50% rating): $1,000/month
What you actually receive:
- Retirement pay: $1,500/month ($2,500 - $1,000 offset)
- VA disability: $1,000/month
- Total: $2,500/month

You're not getting both. You're getting your retirement pay OR your VA disability - whichever is higher. The VA payment just replaces part of your retirement.

Why does this exist? Congress decided retirement pay and disability compensation serve different purposes. You shouldn't get paid twice for the same service. Makes sense in theory, but it sucks in practice.

The good news: CRDP and CRSC eliminate this offset for most retirees. You CAN get both.

CRDP: Concurrent Retirement and Disability Pay

CRDP is the program that allows most retirees to receive both full retirement pay AND full VA disability compensation.

Who Qualifies for CRDP?

You qualify if you meet ALL of these:

You're a military retiree (20+ years of service, not medically retired)
You have a VA disability rating of 50% or higher
Your disability is service-connected (doesn't have to be combat-related)

That's it. If you served 20+ years, retired normally, and have a 50%+ VA rating, you qualify.

What CRDP Pays

CRDP eliminates the VA offset, allowing you to receive:

Full military retirement pay (no reduction)
Full VA disability compensation (no offset)

Example with CRDP:

Military retirement pay: $2,500/month (full amount)
VA disability compensation (50% rating): $1,000/month (full amount)
Total: $3,500/month

That's an extra $1,000/month compared to the offset system. $12,000 per year. Every year. For life.

CRDP Phase-In Schedule (Pre-2014 Retirees)

If you retired before January 1, 2014, your CRDP was phased in gradually over 10 years:

2004-2013: Gradual increases from 0% to 100%
2014 and beyond: 100% CRDP for all qualifying retirees

If you retired after January 1, 2014, you get immediate 100% CRDP as soon as you qualify.

Important CRDP Details

You must have a 50% or higher VA rating:

40% rating: No CRDP (still subject to offset)
50% rating or higher: Full CRDP

It's automatic (mostly):

DFAS (Defense Finance and Accounting Service) automatically enrolls you once VA notifies them of your 50%+ rating
But errors happen - verify you're receiving full amounts

You can switch between CRDP and CRSC:

If you qualify for both, you can choose whichever pays more
You cannot receive both CRDP and CRSC simultaneously

CRSC: Combat-Related Special Compensation

CRSC is a separate program for retirees whose disabilities are specifically combat-related. It's more restrictive than CRDP, but can pay more in certain situations.

Who Qualifies for CRSC?

You qualify if you meet ALL of these:

You're a military retiree (can be 20-year retirement OR medical retirement)
You have a VA disability rating (any rating, even below 50%)
Your disability is combat-related
You waive VA disability pay to receive CRSC (you don't lose money, but there's a technical waiver)

The key difference: CRSC requires combat-related disabilities. CRDP does not.

What Counts as "Combat-Related"?

This is where it gets tricky. Combat-related includes:

Direct combat:

Injuries from firefights, IEDs, mortar attacks
Training for combat operations
Simulated war exercises

Hazardous duty:

Airborne operations injuries
Flight deck injuries
Diving injuries
Parachute injuries

Instrumentality of war:

Injuries caused by military equipment or weapons
Vehicle accidents during military operations
Exposure to burn pits, Agent Orange, etc. (if documented)

Not combat-related:

Injuries from PT outside of combat training
Vehicle accidents during personal time
Non-combat-related illnesses (sleep apnea, back pain from desk work)

What CRSC Pays

CRSC payment equals your VA disability rating percentage applied only to combat-related disabilities.

Example 1: All disabilities are combat-related

VA rating: 70% (all combat-related)
VA disability compensation: $1,800/month
CRSC payment: $1,800/month
Military retirement pay: $2,500/month (full amount)
Total: $4,300/month

Example 2: Some disabilities are combat-related

VA rating: 70% total
- 50% rating from combat injuries
- 20% rating from non-combat conditions
VA disability compensation: $1,800/month (full amount)
CRSC payment: $1,200/month (only the 50% combat portion)
Military retirement pay: $2,500/month (full amount)
Total: $3,700/month

CRSC Application Process

Unlike CRDP (which is mostly automatic), CRSC requires a formal application:

Obtain DD Form 2860 (CRSC application)
Gather documentation:
- VA rating decision letter
- Medical records showing combat-related injuries
- Deployment records (DD214, deployment orders)
- Combat action awards (CAB, CIB, Purple Heart helps but isn't required)
Submit to your branch's retirement office:
- Army: Army Review Boards Agency
- Navy/Marines: Secretary of the Navy Council of Review Boards
- Air Force: Air Force Review Boards Agency
- Coast Guard: Coast Guard Pay and Personnel Center
Wait 6-12 months for review (yes, it's slow)

Pro tip: A Purple Heart, Combat Action Badge, or Combat Infantryman Badge makes approval much easier but isn't required.

Important CRSC Details

Medical retirees can qualify: Unlike CRDP (which requires 20-year retirement), CRSC is available to medical retirees with combat-related disabilities.

You must apply: CRSC is not automatic. If you don't apply, you don't get paid.

Appeals take forever: If your CRSC application is denied, the appeal process can take 18-24 months.

You technically "waive" VA pay: There's a technical waiver of VA compensation to receive CRSC, but you don't actually lose money. Your CRSC payment replaces the VA offset, achieving the same result as CRDP.

CRDP vs CRSC: Which One Should You Choose?

Most retirees qualify for one or the other, but some qualify for both. Here's how to decide:

Choose CRDP if:

You have a 50%+ VA rating (CRDP requires 50%+)
Your disabilities are NOT all combat-related
You want automatic enrollment without application hassle

Choose CRSC if:

Your VA rating is below 50% but your disabilities are combat-related
You're a medical retiree (not 20-year retirement)
Your combat-related disabilities alone equal a higher rating than your total VA rating
You were medically retired due to combat injuries

Do the Math

If you qualify for both, calculate which pays more:

CRDP Payment = Full VA Disability Compensation CRSC Payment = Only the combat-related portion of your VA rating

Example:

Total VA rating: 60% ($1,400/month)
Combat-related portion: 40% ($700/month)
Non-combat portion: 20%

CRDP pays: $1,400/month CRSC pays: $700/month

Choose CRDP - it's $700/month more.

Exception: Medical Retirees If you were medically retired with less than 20 years of service, you might only qualify for CRSC. In that case, CRSC is your only option.

Real Dollar Impact: Examples

Let's look at real scenarios to understand the financial impact.

Scenario 1: 20-Year Retiree, 60% VA Rating, CRDP

Before CRDP (with VA offset):

Military retirement: $2,800/month
VA disability (60%): $1,400/month
Offset: -$1,400
Total received: $2,800/month ($33,600/year)

After CRDP:

Military retirement: $2,800/month (full)
VA disability (60%): $1,400/month (full)
Total received: $4,200/month ($50,400/year)

Benefit: $1,400/month = $16,800/year

Over 20 years of retirement: $336,000 additional

Scenario 2: Medical Retiree, 80% VA Rating, 60% Combat-Related, CRSC

Before CRSC (with VA offset):

Military retirement: $1,800/month
VA disability (80%): $2,000/month
Offset: -$1,800
Total received: $2,000/month ($24,000/year)

After CRSC (60% combat-related approved):

Military retirement: $1,800/month (full)
VA disability (80%): $2,000/month (full)
CRSC adjustment: +$1,400 (combat portion)
Total received: $3,400/month ($40,800/year)

Benefit: $1,400/month = $16,800/year

Scenario 3: 20-Year Retiree, 40% VA Rating

Rating below 50% - No CRDP eligibility:

Military retirement: $2,500/month
VA disability (40%): $700/month
Offset: -$700
Total received: $2,500/month

If CRSC applies (combat-related):

Must apply for CRSC
If approved, receives additional $700/month
Total: $3,200/month

Takeaway: If you have less than 50% but your disabilities are combat-related, CRSC is your only path to concurrent pay.

How to Apply and Verify You're Getting Paid

For CRDP (50%+ VA Rating, 20-Year Retirement)

Step 1: Verify your VA rating

Log in to va.gov
Check your current disability rating percentage
If below 50%, consider filing for an increase if warranted

Step 2: Check your DFAS account

Log in to mypay.dfas.mil
Look at your Leave and Earnings Statement (LES)
Look for line item "CR" or "Concurrent Pay"

Step 3: If you don't see CRDP:

Call DFAS: 1-800-321-1080
Ask them to verify your CRDP status
Confirm VA has shared your 50%+ rating with DFAS

CRDP is automatic, but verify it's actually happening.

For CRSC (Combat-Related Disabilities)

Step 1: Obtain DD Form 2860

Download from your service branch's website
Or request from your branch's retirement pay center

Step 2: Gather supporting documentation:

Copy of all VA rating decisions
Medical records showing injuries
Deployment orders and combat deployment documentation
DD214 showing combat deployments
Any combat awards (Purple Heart, CAB, CIB, CAR, etc.)
Buddy statements from fellow service members if needed

Step 3: Submit application to your branch:

Army: Army Review Boards Agency, Indianapolis
Navy/Marines: Navy Council of Review Boards, Washington DC
Air Force: Air Force Review Boards Agency, SAF/MRBR
Coast Guard: Coast Guard Pay and Personnel Center

Step 4: Wait (unfortunately)

Processing time: 6-12 months
Check status periodically with your branch

Step 5: If approved, verify payments:

Check DFAS account for CRSC payments
Verify amount matches your combat-related rating portion

Common Mistakes That Cost Money

Mistake #1: Not applying for CRSC CRSC is not automatic. If you qualify but don't apply, you lose thousands per year.

Mistake #2: Assuming CRDP is happening Even though CRDP should be automatic, errors occur. Verify your LES shows concurrent pay.

Mistake #3: Not filing for VA rating increase If you're at 40% VA rating, you're $700/month away from CRDP eligibility. File for an increase if you have worsening conditions.

Mistake #4: Not appealing a CRSC denial If your CRSC application is denied, appeal. Many denials are overturned with better documentation.

Mistake #5: Not switching from CRSC to CRDP If you initially qualified only for CRSC, but later your VA rating increases to 50%+, switch to CRDP if it pays more.

Mistake #6: Waiting until after retirement to file VA claims File your VA claims BEFORE you retire. The sooner you get rated, the sooner CRDP or CRSC kicks in.

VA Rating Strategies to Maximize Benefits

To qualify for CRDP, you need 50%+ VA rating. Here's how to ensure you're properly rated:

File Before Separation

Use the Benefits Delivery at Discharge (BDD) program
File 90-180 days before separation
Faster processing and earlier payments

Claim Everything Service-Connected

Back pain
Knee/joint issues
Hearing loss (most common)
Tinnitus (ringing in ears)
Sleep apnea
Mental health (PTSD, anxiety, depression)
Scars
Any injury or condition caused or worsened by military service

Get Nexus Letters

If VA denies service connection, get a private medical opinion (nexus letter) linking your condition to service.

File for Secondary Conditions

If you have a service-connected knee injury that caused back problems, file the back pain as secondary to the knee.

Don't Leave Money on the Table

File for everything. Let the VA rate it. You can't be rated for conditions you don't claim.

Tax Considerations

VA Disability Compensation: Not Taxable Your VA disability payments are not subject to federal income tax.

Military Retirement Pay: Taxable Your military retirement pay is subject to federal income tax.

CRDP and CRSC: Complex

CRDP: Your retirement pay remains taxable, but you also receive non-taxable VA disability
CRSC: The CRSC portion is typically not taxable

Bottom line: Receiving CRDP or CRSC increases your non-taxable income.

State taxes vary: Some states don't tax military retirement at all. Others tax retirement pay but not VA disability. Check your state's rules.

Timeline: When Do Payments Start?

CRDP Timeline

VA awards 50%+ rating
VA notifies DFAS (can take 30-60 days)
DFAS adjusts your pay (can take 30-60 days)
Total: 2-4 months from rating to first concurrent payment
Retroactive pay: If there was a delay, DFAS pays retroactively

CRSC Timeline

Submit application
Branch reviews (6-12 months)
If approved, DFAS adjusts pay (30-60 days)
Total: 7-14 months from application to first payment
Retroactive pay: CRSC pays back to application date or retirement date, whichever is later

Resources and Next Steps

Check Your Current Status:

If you're not receiving concurrent pay:

Calculate if you qualify for CRDP (50%+ rating, 20-year retirement)
If so, call DFAS: 1-800-321-1080
If not, determine if you qualify for CRSC and apply

If you need to increase your VA rating:

File for an increase at va.gov
Consider using a VSO (Veterans Service Organization) for help
Get current medical evidence supporting your claims

Apply for CRSC:

Download DD Form 2860
Gather combat deployment and medical documentation
Submit to your branch's review board

The Bottom Line

If you're a military retiree with VA disability, you should be receiving BOTH retirement pay and disability compensation - not one or the other.

CRDP: If you have 50%+ VA rating and 20+ years of service, you automatically qualify. Verify it's happening.

CRSC: If your disabilities are combat-related, apply for CRSC even if your rating is below 50%.

The financial impact is huge: $12,000-$20,000+ per year for life.

Don't leave this money on the table. Check your status, file your applications, and get every dollar you're entitled to.

Transitioning soon? Use our Transition Checklist to make sure you don't miss critical steps like filing VA claims before separation.

Let me break down exactly how this works, who qualifies, and how to get every dollar you're entitled to.

The Old System: The VA Offset (Still Affects Some Retirees)

First, you need to understand the default system that screws retirees over.

How the VA Offset Works

When you retire from the military, you receive:

Military retirement pay (based on years of service and rank)

When you have a service-connected disability, the VA awards:

VA disability compensation (based on disability rating percentage)

Sounds like you should get both, right? Wrong.

By default, the VA deducts your VA disability amount from your military retirement pay. This is called the "VA offset" or "waiver."

Example:

Military retirement pay: $2,500/month
VA disability compensation (50% rating): $1,000/month
What you actually receive:
- Retirement pay: $1,500/month ($2,500 - $1,000 offset)
- VA disability: $1,000/month
- Total: $2,500/month

You're not getting both. You're getting your retirement pay OR your VA disability - whichever is higher. The VA payment just replaces part of your retirement.

The good news: CRDP and CRSC eliminate this offset for most retirees. You CAN get both.

CRDP: Concurrent Retirement and Disability Pay

CRDP is the program that allows most retirees to receive both full retirement pay AND full VA disability compensation.

Who Qualifies for CRDP?

You qualify if you meet ALL of these:

You're a military retiree (20+ years of service, not medically retired)
You have a VA disability rating of 50% or higher
Your disability is service-connected (doesn't have to be combat-related)

That's it. If you served 20+ years, retired normally, and have a 50%+ VA rating, you qualify.

What CRDP Pays

CRDP eliminates the VA offset, allowing you to receive:

Full military retirement pay (no reduction)
Full VA disability compensation (no offset)

Example with CRDP:

Military retirement pay: $2,500/month (full amount)
VA disability compensation (50% rating): $1,000/month (full amount)
Total: $3,500/month

That's an extra $1,000/month compared to the offset system. $12,000 per year. Every year. For life.

CRDP Phase-In Schedule (Pre-2014 Retirees)

If you retired before January 1, 2014, your CRDP was phased in gradually over 10 years:

2004-2013: Gradual increases from 0% to 100%
2014 and beyond: 100% CRDP for all qualifying retirees

If you retired after January 1, 2014, you get immediate 100% CRDP as soon as you qualify.

Important CRDP Details

You must have a 50% or higher VA rating:

40% rating: No CRDP (still subject to offset)
50% rating or higher: Full CRDP

It's automatic (mostly):

DFAS (Defense Finance and Accounting Service) automatically enrolls you once VA notifies them of your 50%+ rating
But errors happen - verify you're receiving full amounts

You can switch between CRDP and CRSC:

If you qualify for both, you can choose whichever pays more
You cannot receive both CRDP and CRSC simultaneously

CRSC: Combat-Related Special Compensation

CRSC is a separate program for retirees whose disabilities are specifically combat-related. It's more restrictive than CRDP, but can pay more in certain situations.

Who Qualifies for CRSC?

You qualify if you meet ALL of these:

You're a military retiree (can be 20-year retirement OR medical retirement)
You have a VA disability rating (any rating, even below 50%)
Your disability is combat-related
You waive VA disability pay to receive CRSC (you don't lose money, but there's a technical waiver)

The key difference: CRSC requires combat-related disabilities. CRDP does not.

What Counts as "Combat-Related"?

This is where it gets tricky. Combat-related includes:

Direct combat:

Injuries from firefights, IEDs, mortar attacks
Training for combat operations
Simulated war exercises

Hazardous duty:

Airborne operations injuries
Flight deck injuries
Diving injuries
Parachute injuries

Instrumentality of war:

Injuries caused by military equipment or weapons
Vehicle accidents during military operations
Exposure to burn pits, Agent Orange, etc. (if documented)

Not combat-related:

Injuries from PT outside of combat training
Vehicle accidents during personal time
Non-combat-related illnesses (sleep apnea, back pain from desk work)

What CRSC Pays

CRSC payment equals your VA disability rating percentage applied only to combat-related disabilities.

Example 1: All disabilities are combat-related

VA rating: 70% (all combat-related)
VA disability compensation: $1,800/month
CRSC payment: $1,800/month
Military retirement pay: $2,500/month (full amount)
Total: $4,300/month

Example 2: Some disabilities are combat-related

VA rating: 70% total
- 50% rating from combat injuries
- 20% rating from non-combat conditions
VA disability compensation: $1,800/month (full amount)
CRSC payment: $1,200/month (only the 50% combat portion)
Military retirement pay: $2,500/month (full amount)
Total: $3,700/month

CRSC Application Process

Unlike CRDP (which is mostly automatic), CRSC requires a formal application:

Obtain DD Form 2860 (CRSC application)
Gather documentation:
- VA rating decision letter
- Medical records showing combat-related injuries
- Deployment records (DD214, deployment orders)
- Combat action awards (CAB, CIB, Purple Heart helps but isn't required)
Submit to your branch's retirement office:
- Army: Army Review Boards Agency
- Navy/Marines: Secretary of the Navy Council of Review Boards
- Air Force: Air Force Review Boards Agency
- Coast Guard: Coast Guard Pay and Personnel Center
Wait 6-12 months for review (yes, it's slow)

Pro tip: A Purple Heart, Combat Action Badge, or Combat Infantryman Badge makes approval much easier but isn't required.

Important CRSC Details

Medical retirees can qualify: Unlike CRDP (which requires 20-year retirement), CRSC is available to medical retirees with combat-related disabilities.

You must apply: CRSC is not automatic. If you don't apply, you don't get paid.

Appeals take forever: If your CRSC application is denied, the appeal process can take 18-24 months.

CRDP vs CRSC: Which One Should You Choose?

Most retirees qualify for one or the other, but some qualify for both. Here's how to decide:

Choose CRDP if:

You have a 50%+ VA rating (CRDP requires 50%+)
Your disabilities are NOT all combat-related
You want automatic enrollment without application hassle

Choose CRSC if:

Your VA rating is below 50% but your disabilities are combat-related
You're a medical retiree (not 20-year retirement)
Your combat-related disabilities alone equal a higher rating than your total VA rating
You were medically retired due to combat injuries

Do the Math

If you qualify for both, calculate which pays more:

CRDP Payment = Full VA Disability Compensation CRSC Payment = Only the combat-related portion of your VA rating

Example:

Total VA rating: 60% ($1,400/month)
Combat-related portion: 40% ($700/month)
Non-combat portion: 20%

CRDP pays: $1,400/month CRSC pays: $700/month

Choose CRDP - it's $700/month more.

Exception: Medical Retirees If you were medically retired with less than 20 years of service, you might only qualify for CRSC. In that case, CRSC is your only option.

Real Dollar Impact: Examples

Let's look at real scenarios to understand the financial impact.

Scenario 1: 20-Year Retiree, 60% VA Rating, CRDP

Before CRDP (with VA offset):

Military retirement: $2,800/month
VA disability (60%): $1,400/month
Offset: -$1,400
Total received: $2,800/month ($33,600/year)

After CRDP:

Military retirement: $2,800/month (full)
VA disability (60%): $1,400/month (full)
Total received: $4,200/month ($50,400/year)

Benefit: $1,400/month = $16,800/year

Over 20 years of retirement: $336,000 additional

Scenario 2: Medical Retiree, 80% VA Rating, 60% Combat-Related, CRSC

Before CRSC (with VA offset):

Military retirement: $1,800/month
VA disability (80%): $2,000/month
Offset: -$1,800
Total received: $2,000/month ($24,000/year)

After CRSC (60% combat-related approved):

Military retirement: $1,800/month (full)
VA disability (80%): $2,000/month (full)
CRSC adjustment: +$1,400 (combat portion)
Total received: $3,400/month ($40,800/year)

Benefit: $1,400/month = $16,800/year

Scenario 3: 20-Year Retiree, 40% VA Rating

Rating below 50% - No CRDP eligibility:

Military retirement: $2,500/month
VA disability (40%): $700/month
Offset: -$700
Total received: $2,500/month

If CRSC applies (combat-related):

Must apply for CRSC
If approved, receives additional $700/month
Total: $3,200/month

Takeaway: If you have less than 50% but your disabilities are combat-related, CRSC is your only path to concurrent pay.

How to Apply and Verify You're Getting Paid

For CRDP (50%+ VA Rating, 20-Year Retirement)

Step 1: Verify your VA rating

Log in to va.gov
Check your current disability rating percentage
If below 50%, consider filing for an increase if warranted

Step 2: Check your DFAS account

Log in to mypay.dfas.mil
Look at your Leave and Earnings Statement (LES)
Look for line item "CR" or "Concurrent Pay"

Step 3: If you don't see CRDP:

Call DFAS: 1-800-321-1080
Ask them to verify your CRDP status
Confirm VA has shared your 50%+ rating with DFAS

CRDP is automatic, but verify it's actually happening.

For CRSC (Combat-Related Disabilities)

Step 1: Obtain DD Form 2860

Download from your service branch's website
Or request from your branch's retirement pay center

Step 2: Gather supporting documentation:

Copy of all VA rating decisions
Medical records showing injuries
Deployment orders and combat deployment documentation
DD214 showing combat deployments
Any combat awards (Purple Heart, CAB, CIB, CAR, etc.)
Buddy statements from fellow service members if needed

Step 3: Submit application to your branch:

Army: Army Review Boards Agency, Indianapolis
Navy/Marines: Navy Council of Review Boards, Washington DC
Air Force: Air Force Review Boards Agency, SAF/MRBR
Coast Guard: Coast Guard Pay and Personnel Center

Step 4: Wait (unfortunately)

Processing time: 6-12 months
Check status periodically with your branch

Step 5: If approved, verify payments:

Check DFAS account for CRSC payments
Verify amount matches your combat-related rating portion

Common Mistakes That Cost Money

Mistake #1: Not applying for CRSC CRSC is not automatic. If you qualify but don't apply, you lose thousands per year.

Mistake #2: Assuming CRDP is happening Even though CRDP should be automatic, errors occur. Verify your LES shows concurrent pay.

Mistake #3: Not filing for VA rating increase If you're at 40% VA rating, you're $700/month away from CRDP eligibility. File for an increase if you have worsening conditions.

Mistake #4: Not appealing a CRSC denial If your CRSC application is denied, appeal. Many denials are overturned with better documentation.

Mistake #5: Not switching from CRSC to CRDP If you initially qualified only for CRSC, but later your VA rating increases to 50%+, switch to CRDP if it pays more.

Mistake #6: Waiting until after retirement to file VA claims File your VA claims BEFORE you retire. The sooner you get rated, the sooner CRDP or CRSC kicks in.

VA Rating Strategies to Maximize Benefits

To qualify for CRDP, you need 50%+ VA rating. Here's how to ensure you're properly rated:

File Before Separation

Use the Benefits Delivery at Discharge (BDD) program
File 90-180 days before separation
Faster processing and earlier payments

Claim Everything Service-Connected

Back pain
Knee/joint issues
Hearing loss (most common)
Tinnitus (ringing in ears)
Sleep apnea
Mental health (PTSD, anxiety, depression)
Scars
Any injury or condition caused or worsened by military service

Get Nexus Letters

If VA denies service connection, get a private medical opinion (nexus letter) linking your condition to service.

File for Secondary Conditions

If you have a service-connected knee injury that caused back problems, file the back pain as secondary to the knee.

Don't Leave Money on the Table

File for everything. Let the VA rate it. You can't be rated for conditions you don't claim.

Tax Considerations

VA Disability Compensation: Not Taxable Your VA disability payments are not subject to federal income tax.

Military Retirement Pay: Taxable Your military retirement pay is subject to federal income tax.

CRDP and CRSC: Complex

CRDP: Your retirement pay remains taxable, but you also receive non-taxable VA disability
CRSC: The CRSC portion is typically not taxable

Bottom line: Receiving CRDP or CRSC increases your non-taxable income.

State taxes vary: Some states don't tax military retirement at all. Others tax retirement pay but not VA disability. Check your state's rules.

Timeline: When Do Payments Start?

CRDP Timeline

VA awards 50%+ rating
VA notifies DFAS (can take 30-60 days)
DFAS adjusts your pay (can take 30-60 days)
Total: 2-4 months from rating to first concurrent payment
Retroactive pay: If there was a delay, DFAS pays retroactively

CRSC Timeline

Submit application
Branch reviews (6-12 months)
If approved, DFAS adjusts pay (30-60 days)
Total: 7-14 months from application to first payment
Retroactive pay: CRSC pays back to application date or retirement date, whichever is later

Resources and Next Steps

Check Your Current Status:

If you're not receiving concurrent pay:

Calculate if you qualify for CRDP (50%+ rating, 20-year retirement)
If so, call DFAS: 1-800-321-1080
If not, determine if you qualify for CRSC and apply

If you need to increase your VA rating:

File for an increase at va.gov
Consider using a VSO (Veterans Service Organization) for help
Get current medical evidence supporting your claims

Apply for CRSC:

Download DD Form 2860
Gather combat deployment and medical documentation
Submit to your branch's review board

The Bottom Line

If you're a military retiree with VA disability, you should be receiving BOTH retirement pay and disability compensation - not one or the other.

CRDP: If you have 50%+ VA rating and 20+ years of service, you automatically qualify. Verify it's happening.

CRSC: If your disabilities are combat-related, apply for CRSC even if your rating is below 50%.

The financial impact is huge: $12,000-$20,000+ per year for life.

Don't leave this money on the table. Check your status, file your applications, and get every dollar you're entitled to.

Transitioning soon? Use our Transition Checklist to make sure you don't miss critical steps like filing VA claims before separation.