CRDP and CRSC: Restoring the VA Offset

By default, federal law requires an offset between military retired pay and VA disability compensation — a retiree generally cannot receive the full amount of both concurrently. Two programs can restore some or all of that offset for qualifying retirees. Concurrent Retirement and Disability Pay (CRDP) phases out the offset for retirees with 20+ years of service and a VA disability rating of 50% or higher, allowing them to receive both payments in full. Combat-Related Special Compensation (CRSC) is a separate, non-taxable program open to retirees of any retirement type whose disabilities are determined to be combat-related. Retirees cannot receive both CRDP and CRSC for the same disability and must elect between them; the more advantageous choice depends on individual circumstances such as disability rating, combat-relatedness, and tax treatment.