You must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.
Under these rules, you may be entitled to CRDP if...
- you are a regular retiree with a VA disability rating of 50 percent or greater.
- you are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50 percent or greater and who has reached retirement age. (In most cases the retirement age for reservists is 60, but certain reserve retirees may be eligible before they turn 60. If you are a member of the Ready Reserve, your retirement age can be reduced below age 60 by three months for each 90 days of active service you have performed during a fiscal year.)
- you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
- you are a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50 percent or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay.
In addition to monthly CRDP payments, you may be eligible for a retroactive payment. DFAS will audit your account to determine whether or not you are due retroactive payment. An audit of your account requires researching pay information from both DFAS and VA. If you are due any money from DFAS, you will receive it within 30-60 days of receipt of your first CRDP monthly payment. If DFAS finds that you are also due a retroactive payment from the VA, we will forward an audit to the VA. They are responsible for paying any money they may owe you. Your retroactive payment date may go as far back as January 1, 2004, but can be limited based on:
- your retirement date or
- when you first increased to at least 50 percent disability rating
No CRDP is payable for any month before January 2004.
Individual Unemployability You are eligible for full concurrent receipt of both your VA disability compensation and your retired pay, if you are a military retiree who meets all of the above eligibility requirements in addition to both of the following:
- you are rated by the VA as unemployable, generally referred to as Individual Unemployability (IU)
- you are in receipt of VA disability compensation as a result of IU