Concurrent Retirement And Disability Pay

Concurrent retirement and disability pay is a gradual refurbishment of retired defense (military) retiree's account due to their receipt of compensation of DVA or Department of Veterans Affairs.

Defense personnel jeopardize their life for the country's security and integrity and hence they deserve the services and benefits authorized for them.

Hundred years old previous law at present needs disabled Defense retiree's to pay his own disability compensation from the amount he accumulated at the time of his retirement. Nevertheless, if disabled Defense retiree opt for further service in Congress or in the Federal Government and alters his retirement into civil retirement, no amount will be deducted at all to fund disability condition.

For eligibility of beneficiary of Concurrent Retirement and Disability Pay, the personnel must have rendered at least twenty years or more and have qualified for a regular and non-disabled retirement. Usually it depends on status of disability and the disability rating, notwithstanding, if the personnel has VA disability rating between fifty to hundred percent, he is allowed to be a beneficiary of Concurrent Retirement and Disability Pay .

The reaping of benefits out of CRDP takes time of ten years. Meanwhile, the payments will gradually be accumulated for its use post ten years. Post ten years, the disabled retirees will get their retirement pay as well as VA compensation. Those personnel who have discharged their duties less than twenty years are the only exceptions – not receiving any benefits through CRDP.

A personnel will start receiving a ten percent increment in payment each year until a period of ten years, if he is well qualified for CRDP. Payments are directly posted or deposited to the personnel’s account as soon as information of the payment is received by the authorities. A decrease in VT waiver deduction on retiree account statement will be automatically done. The amount received through DVA will be same throughout.

Taxation on CRDP is done through FITW( Federal Income Tax Withholding) tax rates and if desired SITW( State Income Tax Withholding ) will also be deducted as in case of personnel’s retired payment. Some other deductions are also made such as child support, community property and garnishment and government debts.

Any payment can not be at par with endangering one’s life with highest degree of valor for a good cause, indeed, for good of the the nation. Therefore, the government offers services and benefits so that the rest of the life of the warriors may be spent in peace and happiness.