So, you’ve served your country, put in your time, and now you’re trying to figure out your average military retirement pay. Simple enough, right? Wrong. If you’re also dealing with a VA disability rating, things get complicated fast. Welcome to the confusing world of “concurrent receipt” – where understanding how your retirement pay and disability benefits work together can literally mean thousands of dollars in your pocket each year.
Here’s the deal: Many veterans don’t realize that there’s this whole system that might be reducing their retirement check because of their VA disability pay. It’s been called “double dipping” by critics (spoiler alert: it’s not), and it’s left countless retirees scratching their heads wondering why they can’t just receive what they’ve earned.
Quick Key Takeaway: If you’re a military retiree with a VA disability rating, you might be eligible for special compensation programs (CRDP or CRSC) that let you receive both your full retirement pay AND your disability compensation. Understanding which program you qualify for and how they’re calculated can significantly impact your financial planning – and honestly, it’s way more complicated than checking a military retirement pay chart or plugging numbers into a military retirement pay calculator.
The bottom line? This isn’t about gaming the system or getting more than you deserve. You earned your retirement through years of service. You earned your disability pay through sacrifices you made to your health. These are two separate things, and you shouldn’t have to choose between them.
Core Definitions: CRDP vs. CRSC
Okay, let’s break down the alphabet soup. There are two main programs that help veterans receive both retirement and disability pay: CRSC and CRDP. Think of them as two different paths up the same mountain – they both get you to a better financial position, but you’ll take different routes depending on your circumstances.
Combat-Related Special Compensation (CRSC)
CRSC is the program specifically for combat-related injuries. And no, “combat-related” doesn’t just mean you got shot at (though that certainly counts). It’s actually broader than you might think.
Who’s eligible? You need to have:
- At least 20 years of service OR be medically retired
- A VA disability rating of 10% or higher
- Injuries that are directly related to combat, training for combat, or other qualifying operational activities
How’s it calculated? Here’s where it gets interesting. CRSC essentially fills in the gap that’s created when your retirement pay gets reduced by your VA disability pay. The amount you receive depends on your specific disability rating and how much is being offset. You won’t find a simple military retirement pay chart that shows CRSC calculations because every situation is unique.
Tax implications: Here’s the good news – CRSC payments are completely tax-free. That’s a pretty sweet benefit that can add up over time.
The catch? The application process can be intense. You’ll need to document how each disability is combat-related, which sometimes means digging through old service records or getting statements from fellow service members. It’s worth it, but be prepared for some paperwork.
Concurrent Retirement and Disability Pay (CRDP)
CRDP is the more straightforward of the two programs (and I use “straightforward” very loosely here).
Who’s eligible? You need:
- 20 or more years of creditable service (this is key – you need the actual service time)
- A VA disability rating of 50% or higher
Notice something? There’s no requirement that your disabilities be combat-related. This makes CRDP available to a broader group of retirees, including those whose disabilities developed from the daily wear and tear of military service.
How’s it calculated? CRDP gradually restores your retired pay by phasing out the VA waiver. Essentially, instead of having to waive (give up) retirement pay dollar-for-dollar to receive VA disability compensation, CRDP eliminates that offset. When you’re calculating your average military retirement pay with CRDP, you’re basically getting both benefits in full.
Tax implications: Here’s the not-so-great news – unlike CRSC, CRDP payments are subject to federal income tax. Still better than losing the money entirely, but something to factor into your financial planning.
Can you have both CRDP and CRSC? Nope. You can apply for both, and they’ll calculate what you’d get from each, but you can only receive payments from one program. The good news? They’ll automatically pay you whichever amount is higher. You don’t have to guess – they do the math for you.
Legislative Update: The Major Richard Star Act and Future Outlook
Alright, time to talk about the elephant in the room: the Major Richard Star Act. If you’ve been following military benefits news, you’ve probably heard about this one.
What is it? The Major Richard Star Act is named after Army Sgt. 1st Class Richard Star, who was medically retired due to cancer (likely caused by burn pit exposure) after 20 years of service. Here’s the problem: because he was medically retired rather than completing his full 20 years before retirement, he didn’t qualify for CRDP. And because his disabilities weren’t directly combat-related in the traditional sense, CRSC was complicated too.
This Act aims to fix what many consider a glaring injustice in the system. It would allow combat-disabled veterans who were medically retired with less than 20 years of service to receive both their full disability compensation AND their retirement pay, without the offset.
Current status? As of early 2025, this is still being debated in Congress. It’s gained significant bipartisan support (which is rare these days), but it keeps getting hung up on cost concerns. The Congressional Budget Office estimates it would cost billions over ten years, and there’s ongoing debate about whether that money should come from the Treasury or the DoD budget.
Here’s why this matters for your average military retirement pay calculation: If this Act passes, it could affect tens of thousands of veterans who are currently caught in this gap. The PACT Act (which expanded benefits for toxic exposure) has also complicated the fiscal landscape, making some lawmakers nervous about additional expenses.
What can you do? Stay informed. Organizations like the Military Officers Association of America (MOAA) and the National Military Family Association track legislative updates. You can sign up for their newsletters or follow them on social media. If this issue affects you, don’t hesitate to contact your representatives – they need to hear from real veterans about real impacts.
Step-by-Step Action Plan for Reviewing Your Benefits
Okay, enough theory. Let’s talk about what YOU need to do right now to make sure you’re getting everything you’ve earned.
Step 1: Review Your Service Records for Accuracy
I cannot stress this enough – your service records need to be spot-on accurate. Any discrepancies can affect your benefit calculations, and trust me, you don’t want to discover errors years into retirement.
What to check:
- Total creditable service time (this affects CRDP eligibility)
- Documentation of any service-connected injuries or conditions
- Deployment records (important for CRSC applications)
- Your High-36 months of pay (if that’s your retirement plan)
Your service record is the foundation of your military retirement pay calculator input. Garbage in, garbage out, as they say. If you find errors, work with your service’s personnel office or the National Personnel Records Center to get them corrected BEFORE you retire if possible.
Step 2: Compare Retirement Plans and Understand Your Average Military Retirement Pay
Not all retirement plans are created equal, and your retirement plan affects how concurrent receipt works for you.
The main retirement systems are:
- Final Pay (if you entered before September 8, 1980)
- High-36 (if you entered between September 8, 1980, and July 31, 1986, or didn’t choose REDUX)
- REDUX (less common, offered to those who took the Career Status Bonus)
- Blended Retirement System (BRS) (if you entered after January 1, 2018, or opted in)
Each system calculates your base retired pay differently. The High-36 system, for example, uses an average of your highest 36 months of basic pay – hence the name. When you’re looking at a military retirement pay chart or using a military retirement pay calculator, make sure you know which system applies to you, because that baseline retirement calculation is what CRDP and CRSC build upon.
Step 3: Know Your Numbers
You need three key numbers:
- Your base retirement pay amount
- Your VA disability rating and monthly compensation amount
- The current offset (if any) between them
Many retirees are shocked when they actually sit down and calculate what they’re losing to the VA waiver. Sometimes it’s hundreds of dollars a month – that’s thousands per year that you could potentially recover through CRDP or CRSC.
Step 4: Apply for the Right Program(s)
Here’s my advice: Apply for both CRDP and CRSC if you think you might qualify for either. Let the system determine which gives you more money.
For CRDP, the process is relatively automatic once you meet the eligibility criteria. For CRSC, you’ll need to submit an application to your service branch with documentation of your combat-related disabilities.
Step 5: Seek Professional Consultation
Look, I’m giving you the information here, but everyone’s situation is unique. Between different retirement systems, various disability ratings, tax implications, and individual financial situations, there’s a lot to consider.
Find someone who specializes in military benefits – either a financial advisor with military experience or an attorney who focuses on veterans’ benefits. Yes, it might cost you a few hundred dollars for a consultation, but if they help you secure thousands in additional annual benefits, that’s a pretty good ROI.
Related Benefits and Financial Planning Considerations
While we’re talking about maximizing your average military retirement pay, let’s not forget about the other benefits you’ve earned. These all work together to create your complete retirement picture.
Tricare Enrollment: Don’t Miss the Window
You’ve got 90 days from your retirement date to enroll in Tricare (Prime or Select). Miss that window, and you could face penalties or waiting periods. This is separate from your retirement pay or concurrent receipt, but healthcare costs are a huge part of retirement planning. Don’t sleep on this.
And here’s something many people don’t realize: Your CRDP or CRSC eligibility doesn’t affect your Tricare eligibility. You’re entitled to Tricare coverage based on your military retirement, period.
Thrift Savings Plan (TSP): Keep Growing Your Nest Egg
If you’re in the Blended Retirement System, you’ve been getting matching contributions to your TSP. Even if you’re in an older retirement system, you probably have a TSP account.
Don’t forget about this money when calculating your total retirement income. Your average military retirement pay is important, but your TSP could represent a significant portion of your retirement assets – potentially hundreds of thousands of dollars if you’ve been contributing consistently.
One tip: Think about how your TSP withdrawals and CRDP payments interact from a tax perspective. Since CRDP is taxable (but CRSC isn’t), your overall tax strategy might look different depending on which program you’re using.
Veterans’ Benefits: The Full Package
Don’t leave money on the table. As a retiree, you might be eligible for:
- VA Home Loans (with no down payment and competitive rates)
- GI Bill transferability (did you transfer it to family members before retiring?)
- State-specific veterans’ benefits (these vary wildly, so check your state)
- Commissary and Exchange privileges
- Space-available military travel
None of these directly affect your military retirement pay calculator results, but they’re all part of the total value proposition of your military service.
Why is my military retired pay reduced by my VA disability pay?
Great question, and it frustrates a lot of veterans. Here’s the deal: There’s this thing called the “VA Waiver” or offset that’s been around since 1938. Basically, the law says you can’t receive full military retirement pay AND full VA disability compensation at the same time – you have to waive (give up) retirement pay dollar-for-dollar to receive your VA disability.
Why? The original reasoning was to prevent “double compensation” for the same service. But here’s why that logic doesn’t hold up: Your retirement pay is compensation for fulfilling your service obligation – you earned it by serving 20+ years. Your VA disability is compensation for service-connected injuries and their impact on your quality of life. They’re two different things.
That’s where CRDP and CRSC come in – they were created to eliminate or reduce this offset for eligible veterans. But if you don’t qualify for either program (maybe you have less than 20 years, or your VA rating is below 50%), you’re stuck with the offset. This is the core injustice that the Major Richard Star Act is trying to fix.
What’s the biggest mistake veterans make regarding concurrent receipt?
Honestly? Not taking action at all. I see this all the time – veterans who qualify for CRDP or CRSC but never apply, or who apply late and lose out on years of back pay.
The second biggest mistake is prioritizing immediate retired pay over understanding the long-term implications. For example, some veterans see that CRDP is subject to taxes and think “why bother?” But even after taxes, you’re still coming out way ahead compared to the VA offset.
Third mistake: Not ensuring service records are accurate before retirement. Once you’re retired and years go by, it becomes much harder to correct errors that might affect your average military retirement pay calculations or your CRDP/CRSC eligibility.
How long does it take to get approved for CRDP or CRSC?
CRDP is usually pretty quick – often automatic if you meet the criteria (20+ years and 50%+ VA rating). You might see it reflected in your pay within a few months of establishing your VA rating.
CRSC takes longer because you have to apply and provide documentation. We’re talking several months to over a year in some cases, depending on your service branch and how complex your case is. The good news is that if you’re approved, you’ll typically receive back pay to the date you applied (or the date you became eligible, whichever is later).
Are CRDP and CRSC taxed?
They’re treated differently for tax purposes:
- CRSC is tax-exempt. This is a big deal. Because it’s categorized as disability compensation rather than retired pay, you don’t pay federal income tax on it. When you’re looking at your net (after-tax) income, this tax-free status can make CRSC more valuable than it appears on paper.
- CRDP is subject to federal income tax. Since CRDP is essentially restored retirement pay, it’s taxed just like your regular military retirement pay. You’ll receive a 1099-R for it.
This tax difference is one reason why you might choose one program over the other if you qualify for both. Sometimes a lower CRSC payment might actually put more money in your pocket than a higher CRDP payment, once you account for taxes.
Can I use a military retirement pay calculator to figure out my CRDP or CRSC amount?
Basic military retirement pay calculators will give you your baseline retired pay, but they don’t typically calculate CRDP or CRSC amounts because those depend on multiple variables:
- Your specific VA disability rating
- Which disabilities qualify as combat-related (for CRSC)
- Your current offset amount
- Your tax situation (for comparing CRDP vs. CRSC)
The Defense Finance and Accounting Service (DFAS) has some tools on their website, but honestly, the calculations can get complex. This is another reason why consulting with a professional who can look at your specific military retirement pay chart and individual circumstances is worth it.
What if my VA rating increases after I’m already receiving CRDP or CRSC?
Your payment should automatically adjust upward. The VA and DFAS share information, and your concurrent receipt payment is tied to your VA disability rating. If your rating goes from, say, 50% to 70%, your average military retirement pay should increase accordingly because less of it is being offset.
That said, sometimes things fall through the cracks bureaucratically. Check your pay statements regularly, and if you don’t see the expected increase within a few months of your VA rating change, contact DFAS directly.
Wrapping It All Up
Look, I get it – this is complicated stuff. You served your country, dealt with enough acronyms and bureaucracy for a lifetime, and now you just want to understand your benefits and get what you’ve earned. Fair enough.
Here’s the bottom line: If you’re a military retiree with a VA disability rating, you need to understand concurrent receipt. It’s not “double dipping” or “gaming the system” – it’s receiving two separate benefits you earned through two separate circumstances. Your average military retirement pay could be significantly higher than you think if you qualify for CRDP or CRSC.
Don’t just pull up a military retirement pay calculator, plug in some numbers, and call it done. Take the time to:
- Verify your service records
- Understand which retirement system you’re in
- Calculate your potential CRDP or CRSC eligibility
- Consider the tax implications
- Apply for any benefits you’re eligible for
- Keep up with legislative changes (like the Major Richard Star Act)
And seriously, talk to a professional. Whether it’s a financial advisor, an attorney specializing in military benefits, or both, getting expert guidance on your specific situation is worth every penny.
You spent years serving. Now it’s time to make sure you’re getting everything you’ve earned. Stay informed, stay proactive, and don’t leave money on the table.
Need help navigating your specific situation? Consider reaching out to organizations like MOAA, your service’s retiree services, or legal professionals who specialize in military benefits. Your future financial security is worth the effort.
Remember: This guide is for educational purposes and doesn’t constitute legal or financial advice. Every veteran’s situation is unique, so consult with qualified professionals before making important decisions about your benefits.
Important Disclaimer: Hey, before we dive in – this article is meant to educate and inform you, not to serve as legal or financial advice. Everyone’s situation is different, so please consult with a qualified attorney or financial advisor (someone like the Law Office of Shannon James PLLC) who specializes in military benefits before making any major decisions. Cool? Cool.