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Can I Receive VA Disability and Military Retirement?

retirement

Can I Receive VA Disability and Military Retirement? 

Some disabled veterans can receive military retired pay and VA disability benefits at the same time. However, most veterans who are eligible for both types of benefits will be required to waive military retirement benefits to the extent of their VA disability benefits. Because of this offset, a veteran who is receiving military retirement pay and files a successful claim for VA disability benefits usually won’t see much of a difference in total benefits. 

However, there are some exceptions. Receiving both sets of benefits in full requires that the veteran qualify separately for each and also qualify for concurrent retirement and disability pay. Alternatively, some veterans who are separately eligible for military retirement and VA disability benefits may qualify for special compensation that helps make up for the offset.

Qualifying for Military Retirement Pay and VA Disability

Military Retirement Pay

The qualification for military retired pay is straightforward: members of the military are entitled to retirement pay if they accumulate at least 20 years of active duty service. A veteran who has retired medically from any branch of the armed services may also qualify for military retirement benefits. 

VA Disability Benefits

To qualify for VA disability benefits, a veteran must show that they suffer from a service-connected illness or medical condition. The veteran must also provide sufficient medical documentation to establish a disability rating. The disability rating will determine the amount of the veteran’s monthly disability benefits.

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Combining VA Disability and Military Retirement Benefits

A veteran who separately qualifies for both types of benefits won’t necessarily be eligible to receive full retirement pay and VA disability benefits simultaneously. That’s because the general rule is that veterans who are eligible for military retired pay and receive VA disability benefits are required to waive retirement pay to the extent of their monetary VA disability benefits. 

In other words, a veteran who is receiving military retirement pay and is awarded disability benefits at the 50% level ($1,075.16/month in 2024) will usually see their retirement pay reduced by that exact amount. For most veterans, that’s actually a slight net gain, since VA disability benefits aren’t taxed. But, it’s generally significantly less than the veteran might receive if they were eligible to receive both benefits at once. . 

Concurrent Retirement and Disability Pay 

A disabled veteran qualifies for concurrent retirement and disability pay (CRDP) if: 

  • The veteran separately qualifies for each benefit, and
  • The veteran has a VA disability rating of at least 50%, either for a single service-connected condition or a combination of service-connected conditions

A veteran who meets both of these requirements is exempt from the waiver requirement, meaning that they can receive full benefits from both programs at the same time. Note, though, that a veteran who retired under Chapter 61 for disability will qualify for concurrent pay only if they have 20 years of active duty service. Otherwise, the reduction in retirement pay to offset VA disability payments applies. 

Combat-Related Special Compensation

A veteran who has a VA disability rating due to a combat-related disability may qualify for combat related special compensation (CRSC) in circumstances where they would not qualify for CRDP. For example: 

  • A veteran with a combat-related disability may qualify for CRSC with a VA disability rating as low as 10%
  • A veteran who retired medically and did not have 20 years of military service may qualify, though a disability rating of at least 30% will be required
  • A veteran covered under the Temporary Early Retirement Act (TERA) or on the temporary or permanent retired list may qualify

CRSC is intended to make up for some of the benefits lost due to the offset of VA disability benefits against military retirement pay. 

A veteran cannot receive concurrent retired pay and CRSC at the same time. If you qualify for both, you will need to assess which is most beneficial to you and choose one. 

Choosing the Best Combination of VA Disability and/or Military Retirement Pay for You

When you qualify for both VA disability benefits and military retirement pay but don’t qualify for concurrent benefits, you can waive your retirement pay to the extent of your VA disability benefits or you can waive your VA disability benefits and receive your retirement benefits. 

There are several factors to consider in deciding which benefits to claim, including the total amount of benefits you are eligible for (including CRSC) and the taxability of the benefits you receive. It’s important to fully understand how military retirement pay and VA disability benefits work together and when you may be able to receive both benefits before waiving one or the other. It’s also important to consider your possible eligibility for concurrent benefits and for CRSC, so you can be sure to choose the combination of benefits that works best for you.

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Get the Help You Need with VA Disability and Military Retirement Pay

Both CRDP and CRSC can increase the net amount of monthly benefits available to someone who qualifies for both military retirement pay and VA disability. But, as with any government benefit, it’s up to you to demonstrate that you’re qualified. And, you’ll have the added challenge of ensuring that you choose wisely if you qualify for different benefits but are subject to offset or must choose between benefits. 

The experienced disability benefits advocates at Disabled Vets understand the criteria and what type of evidence is required to establish your claim and ensure that you get all the benefits you deserve. We also have extensive knowledge of the different types of benefits available and how they may be combined to give you the best monthly compensation and related benefits. To learn more about how we can help, call 888-373-4722 right now, or fill out our contact form here. 

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