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Dec 13 13 11:25 PM
Good Day ALL & Merry Christmas:
If possible, do any one have information if the 10 year Phase Out CRDP Chapter 61 is in the 2014 Federal Budget?
Dec 13 13 11:40 PM
Dec 14 13 7:08 PM
Thanks for responding. I was referring to Chapter 61 with < 20yrs whom were "supposed" to receive both Retirement & VA pay. Please advise.
Merry Christmas & Be Blessed
Antoinette D. Stanford
SSG - Army-Disabled Vet
Dec 14 13 8:36 PM
Re: "Thanks for responding. I was referring to Chapter 61 with < 20yrs whom were 'supposed' to receive both Retirement & VA pay. Please advise."
1. The Federal budget for 2014 (new fiscal year eff 1 Oct 13) does not include provisions for payment of CRDP to Chapter 61 retirees other than what was approved previously. In other words, no change in this area.
2. CRDP is a "phase in" of benefits that gradually restores a retiree's VA disability offset. This means that an eligible retiree's retired pay will gradually increase each year until the phase in is complete effective January 2014. The completion of the "phase in" does not change the qualification requirements for CRDP; only the percentage of "restoration" changes (CRDP restores waived retired pay). The restoration rate for 2013 has been 99.96%, As of 1 January 2014, the restoration rate is 100% (of CRDP amount computed). This does not expand the qualifying criteria. The following URL shows the phase in process: http://militarypay.defense.gov/retirement/concurrent_dod_va.html
3. CRDP (currently and also for 2014):
EligibilityYou must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.
Under these rules, you may be entitled to CRDP if…
Dec 21 13 2:33 PM
Note: This option would take effect in October 2014.
Military service members who retire—either following
20 or more years of military service under the longevity-based
retirement program or early because of a disability—are eligible for
retirement annuities from the Department of Defense (DoD). In addition,
veterans with medical conditions or injuries that were incurred or
worsened during active-duty military service (excluding those resulting
from willful misconduct) are eligible for disability compensation from
the Department of Veterans Affairs (VA).
Until 2003, military retirees who were eligible for disability
compensation could not receive both their full retirement annuity and
their disability compensation. Instead, they had to choose between
receiving their full retirement annuity from DoD or receiving their
disability benefit from VA and forgoing an equal amount of their DoD
retirement annuity; that reduction in the retirement annuity is
generally referred to as the VA offset. Because the retirement annuity
is taxable and disability compensation is not, most retirees chose the
As a result of several laws, starting with the National Defense
Authorization Act for 2003, two classes of retired military personnel
who receive VA disability compensation (including those who retired
before the enactment of those laws) can now receive payments that make
up for part or all of the VA offset, benefiting from what is often
called concurrent receipt. Specifically, retirees whose disabilities
arose from combat are eligible for combat-related special compensation
(CRSC), and veterans who retire with 20 or more years of military
service and who receive a VA disability rating of 50 percent or more are
eligible for what is termed concurrent retirement and disability pay
(CRDP). CRSC is exempt from federal taxes, but CRDP is not; some
veterans would qualify for both types of payments but must choose
between the two.
This option would eliminate concurrent receipt of retirement pay and
disability compensation beginning in 2015: Military retirees currently
drawing CRSC or CRDP would no longer receive those payments, nor would
future retirees. As a result, the option would reduce federal spending
by $108 billion between 2015 and 2023, the Congressional Budget Office
In 2012, of the roughly 2 million military retirees, about half were
subject to the VA offset; about 40 percent of that latter group—or
420,000 retirees—got concurrent receipt payments totaling $7 billion.
Spending for concurrent receipt, which was just over $1 billion in 2005,
has climbed sharply because of both an expansion of the program and an
increase in the share of military retirees receiving disability
compensation. In particular, the share of military retirees receiving a
longevity-based retirement annuity who also receive disability
compensation rose from 33 percent in 2005 to 45 percent in 2012.
One argument for this option is that disabled veterans would no
longer be compensated twice for their service, reflecting the reasoning
underlying the creation of the VA offset. However, military retirees who
receive VA disability payments would still receive higher after-tax
payments than would retirees who are not disabled and who have the same
retirement annuity because VA disability benefits are not taxed.
An argument against this option is that the DoD retirement system and
the VA disability program compensate for different characteristics of
military service: rewarding longevity in the former case and
remunerating for pain and suffering in the latter. In addition, a
determination of disability by VA is a gateway to receiving other VA
services (such as health care or vocational training), yet many veterans
consider the disability-rating process onerous. If fewer retirees
applied for VA disability compensation because concurrent receipt was no
longer available, some veterans might bypass other VA services for
which they would be entitled otherwise. Moreover, some retirees would
find the loss of income financially difficult.
Dec 21 13 4:46 PM
Re: "First it was retirees COLA increase, next, Elimination of CRDP..."
Your position as part of your lengthy post, that the lead-in above was her concern/issue, does not appear (in my opinion) to be the motive for her questions. She said, "If possible, do any one have information if the 10 year Phase Out CRDP Chapter 61 is in the 2014 Federal Budget?"
Later, she mentioned, "I was referring to Chapter 61 with < 20yrs whom were "supposed" to receive both Retirement & VA pay. Please advise."
The answer is that the 2014 Federal Budget did not expand the eligibility for CRDP to include Chapter 61 retirees with less than 20 years active duty.
Your reference to the Congressional Budget Office's options for consideration at http://www.cbo.gov/budget-options/2013/44744 has been discussed at great length elsewhere on VBN.
Dec 21 13 5:19 PM
Dec 21 13 5:26 PM
Yes, "Where she got me was in her question that said "phase out". I'm guessing, she meant "phase IN"-- the same was true for me when I first read the post.
Thank you for your reply,
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