| Concurrent Retirement and Disability Pay (CRDP) is a | | | | they wish to have deducted for State Income tax |
| phased-in reinstatement of the retired pay deducted | | | | Withholding (SITW). |
| from military retiree's accounts due to their receiving | | | | The payments are also subject to collection actions |
| of department of veterans Affairs (DVA) | | | | for child support, community property, government |
| compensation, showing on their Retiree Account | | | | debt, alimony, and garnishment. The Concurrent |
| Statements as the "VA waiver". The phased-in | | | | Retirement and Disability Pay payment rates are as |
| restoration started January 1, 2004 with the initial | | | | follows: (computation begins with the "table rates") |
| payments dated February 2, 1004. | | | | -If rated unemployable $750.00 |
| A person is qualified for the Concurrent Retirement | | | | -If rated at 100% $750.00 |
| and Disability Pay if they have a DVA-rated, | | | | -If rated at 90% $500.00 |
| service-connected disability of fifty percent or higher, | | | | -If rated at 80% $350.00 |
| except if they are a disability retiree with less than | | | | -If rated at 70% $250.00 |
| twenty years of service or a retiree who combined | | | | -If rated at 60% $125.00 |
| the military time and civil service time to meet the | | | | -If rated at 50% $100.00 |
| criteria for a civil service retirement. If they have | | | | The total computed CRDP amounts based on the |
| combined the military time and civil service time in | | | | rates will increase each year until January 2014 when |
| order to improve their civil service retirement from | | | | they will be receiving their full retired pay entitlement |
| OPM, then they are eligible for the Concurrent | | | | and their DVA disability compensation with no |
| Retirement and Disability Pay payments, but they will | | | | reduction. Unlike Retired Pay Cost-of-Living |
| have to replace their retired pay by coordinating with | | | | Allowances (COLAs), The Concurrent Retirement and |
| OPM. If one becomes eligible for CRDP, their | | | | Disability Pay increases will be effective on the 1st of |
| payments will start automatically. | | | | January every year, to be paid on the first business |
| Payments from the Concurrent Retirement and | | | | day of February. In addition, since retired gross pay, |
| Disability pay are delivered through direct deposits or | | | | DVA compensation, and consequently VA waiver |
| mailed-based on their current retired pay information. | | | | amounts, increase very year with COLAs, they will |
| The payments will reflect as a decrease in the VA | | | | not be able to precisely extrapolate CRDP amounts |
| waiver deduction on their retiree Account Statement, | | | | for upcoming years. |
| but they will maintain to be given the same amount | | | | CRDP amounts will automatically decrease or increase |
| from the DVA. | | | | based on the percentage of disability accounted to |
| The Concurrent Retirement and Disability Pay | | | | the Defense Finance and Accounting Service (DFAS) |
| payments are taxable according to their current | | | | by the DVA. Just remember that the monthly CRDP |
| retired pay federal Income tax Withholding (FITW) | | | | amounts cannot go beyond the lesser of your |
| tax rate and may have an effect on the amount | | | | monthly gross related pay or VA waiver amount. |