Your personal CRDP payment rate is determined by your current VA Disability Compensation waiver, minus the CRDP "Table Rate," then multiplied by the current CRDP "Phase Out" percentage. This makes it impossible to create a simple CRDP Payment Rate table that applies to everyone.
However the following four-step computation process can help you predict or verify your CRDP payment rate.
NOTE: The following is an example to help illustrate how the computation works. The VA compensation amounts do not necessarily reflect the current VA payment rates.
First Step - Determine your CRDP pay computation “table rate”:
| If rated unemployable | $750.00 |
| If rated at 100% | $750.00 |
| If rated at 90% | $500.00 |
| If rated at 80% | $350.00 |
| If rated at 70% | $250.00 |
| If rated at 60% | $125.00 |
| If rated at 50% | $100.00 |
Example: To help illustrate the process, assume the following for an eligible single retiree with no children and a V90% A Disability Rating:
| Gross Retired Pay: | $1,800.00 |
| VA Disability Compensation Amount: | $1,517.00 |
| CRDP table rate (90% rating): | $500.00 |
Second Step - Subtract the CRDP table rate from your current VA Disability Compensation amount (VA waiver).
Example:
| VA waiver: | $1,517.00 |
| CRDP table rate (90% rating): | - $500.00 |
| Difference: | $1,017.00 |
Third Step - Multiply the difference by the current restoration rate.
| 2008 | 69.76% |
| 2009 | 84.88% |
| 2010 | 93.95% |
| 2011 | 98.18% |
| 2012 | 99.64% |
| 2013 | 99.96% |
| 2014 | 100.00% |
Example: We’ll use the 2008 restoration rate of 69.76%
| Difference: | $1,017.00 |
| 2008 Restoration rate: | x 69.76% |
| Product: | $709.46 |
Fourth Step - Add the product to the table rate amount to find your CRDP amount.
Example:
| Product: | $709.46 |
| CRDP table rate (90% rating): | + $500.00 |
| 2008 CRDP amount: | $1209.46 |
These amounts will increase each year until January of 2014 when you will receive your full retired pay entitlement and your DVA disability compensation with no reduction. Unlike Retired Pay Cost-Of-Living Allowances (COLAs), CRDP increases will be effective on January 1st of each year, payable on the first business day of February. Additionally, since retired gross pay and DVA compensation (and, consequently, VA waiver) amounts increase each year with COLAs, you will not be able to accurately extrapolate CRDP amounts for future years.
Retirees who have a 100% DVA rating (Including those rated 100% Individual Unemployability (IU)) are entitled to an immediate 100% restoration. CRDP amounts will automatically increase or decrease based on the percentage of disability reported to the Defense Finance and Accounting Service (DFAS) by the DVA.
Please note that your monthly CRDP amount cannot exceed the lesser of your monthly gross retired pay or VA waiver amount. If you are a disability retiree whose retired pay is calculated using a percentage of disability rather than your years of service, your CRDP cannot exceed the amount your gross retired pay would currently be had it been calculated at retirement using your years of service.
