Concurrent Receipt

brianwl

PEB Forum Regular Member
PEB Forum Veteran
I have been asked a couple times to explain what concurrent receipt is and how it works. Rather than put it in various threads, I thought I'd put it all in one thread in the General forum for all to see.

The purpose of concurrent receipt is to eliminate the dollar for dollar offset retirees see. Presently all retirees lose $1 of their retirement for every dollar they receive in VA Disability Compensation.

Under current law only those retired with 20 or more years are eligible for either program.

Currently there are two types of concurrent receipt, CRDP and CRSC.

CRDP: To put is simply is how DoD makes your retirement whole after the VA takes their part and is considered taxable income. It is also automatic.

CRSC: Serves the same function as CRDP, however it is tax free and you MUST qualify for it. CRSC is for those who have disabilities earned either in combat or combat related training.

Both programs started implementation in 2004 with a 10 year phase in period. Also, those with disabilities rated by the VA as less than 60% were not eligible.

At this time there is a bill in Congress HR333 Disable Veterans Tax Termination Act. This bill will make both CRDP and CRSC available to retirees with less than 20 years of service, eliminate the phase in period and remove the requirement of 60% or more disability.

Now, here's how the math works out:

Example: Original retirement is 2k month. VA rates you at 1k month. Without either CRDP or CRSC you would lose 1k per month from retirement.

With CRDP alone you will now receive 2k taxable plus 1k VA tax free.

If you qualify for $500.00 in CRSC then you will receive $1500.00 taxable retirement, $500.00 tax free CRSC, and 1k VA tax free.

No matter how you add the numbers, you will never receive more than your original gross retirement plus the VA compensation.
 

maparker

Moderator
PEB Forum Veteran
Registered Member
Brian,

You do not have to have 20 years to qualify fir CRDP if you are a length of service retiree. Only Chapter 61 disability retirees need 20 years to qualify for CRDP.

CRSC requires 20 years regardless of how one retired.

Mike
 

brianwl

PEB Forum Regular Member
PEB Forum Veteran
Brian,

You do not have to have 20 years to qualify fir CRDP if you are a length of service retiree. Mike

Mike,

Now you have me confused. How can you have a length of service retirement without having 20 years of credible service?
 

maparker

Moderator
PEB Forum Veteran
Registered Member
Couple of ways I know of, there may be more.

TERA retirees such as we had in the 90's. Govermment offers LOS retireements with less than 20 to "right size" the force.

Those who reach 62 years of age before having 20 years active duty. Rare but it happens.

Reservist with 15 but less than 20 who sre found unfit due to a non service connected disability. There is a provision in the law that states they can be retireed LOS.

All of the above get CRDP if VA rating is 50% or more.

Mike
 
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