Re: "As an example, if someone collects $500 VA and their mil pay is $1500, you will receive $1500 a month but $500 of that is tax deferred. If your VA payment is higher than your mil pay, you will receive your va payment and all will be tax free. At age 60, you collect both concurrently. "
CRDP includes a requirement of being rated by the VA >= 50%. If the VA rating is less than 50%, then CRDP is not payable.
Members retired for disability under Chapter 61 of title 10 United States Code may be entitled to CRDP only if they have at least 20 years of service qualifying for regular or reserve retirement. Additionally, any disability retired pay that is in excess of retired pay to which that member would be otherwise entitled (i.e., for years of service) remains subject to offset and may not be restored under the CRDP program (see note 1). In the case of a reserve or NG individual, the retirement age requirement (with reduction, if applicable) must be met as well.
Note 1: CRDP does not restore waived DoD disability pay; therefore, only the dollar amount of retired pay for years of service may be restored via CRDP.