Military service members planning medical retirement face a critical decision point at the 20-year mark. A service member who medically retires with 19 years of service receives either military retirement pay or Department of Veterans Affairs compensation, but not both in full. A service member who reaches 20 years gets both without offset through concurrent retirement and disability pay (CRDP).
Before CRDP existed, military retirees receiving VA disability compensation had their retirement pay reduced dollar-for-dollar by their VA payments. The 2004 National Defense Authorization Act changed this. CRDP allows eligible veterans to receive full military retirement pay and full VA disability compensation simultaneously. Today, more than 310,000 retirees receive CRDP payments totaling over $427 million monthly.
The basic requirements are straightforward. Veterans must be entitled to military retired pay and VA disability compensation, and they must have a VA disability rating of 50% or higher. Regular retirees with 20 or more years qualify automatically. Reserve retirees with 20 qualifying years qualify when they reach retirement age. Veterans retired under Temporary Early Retirement Authority with 15 to 19 years qualify.
Medical retirees with fewer than 20 years generally don't qualify at all.
Chapter 61 Medical Retirement
Service members medically retired under Chapter 61 of Title 10 face different rules. Chapter 61 covers veterans who are found physically unfit for continued service and placed on the Temporary Disability Retired List or permanently retired for disability.
Medical retirees with 20 or more years of service qualify for CRDP, but with a caveat. They can receive CRDP only up to the amount of retirement pay they would have received based on years of service, not based on their disability rating.
For example, a service member with 20 years of service normally receives retirement pay calculated at 50% of their base pay. If that same service member is medically retired with a 60% disability rating, their disability retirement pay is calculated at 60% of base pay. Under CRDP, they can receive a 50% longevity-based amount without VA offset, but the additional 10% remains subject to offset.
Medical retirees with fewer than 20 years of service don't qualify for CRDP at all, regardless of their VA disability rating. This creates significant financial consequences for service members facing medical retirement before reaching 20 years.
The Financial Impact
A service member with 18 years of service and a 70% VA disability rating who is medically retired doesn't receive both payments. If their military disability retirement pay is $2,000 per month and their VA disability compensation is $1,800 per month, they receive the higher amount, typically keeping the non-taxable VA compensation and waiving military retirement pay.
A service member with 20 years in the same situation receives both payments in full through CRDP, totaling $3,800 monthly. The two-year difference creates an $1,800 monthly gap that continues for life.
Reserve and National Guard members need 20 qualifying years of service, which requires earning at least 50 retirement points annually. A service member with 14 years of active duty and six years of reserve duty might have 20 years total but not 20 qualifying years under the point system. Reserve retirement pay doesn't begin until the service member reaches retirement age, typically 60. Those who medically retire before 20 qualifying years face the same offset as active-duty members.
The Stay or Go Decision
Service members approaching medical retirement between 15 and 20 years face difficult calculations. Continuing service while managing service-connected conditions can worsen those conditions. Some remain on limited duty to accumulate time for CRDP eligibility. Others accept medical retirement earlier, forgoing CRDP but potentially receiving higher disability ratings.
The decision depends on individual circumstances. A service member at 18 years with stable disabilities might benefit from reaching 20 years. A service member at 15 years with rapidly deteriorating conditions might not. Medical retirement timelines also matter. The Integrated Disability Evaluation System process can take months, and service members who begin the process near 20 years might cross the threshold before final retirement orders.
Read More: Off the Clock with Dr. Emma: Will Love Survive a Spouse’s Medical Separation from the Military?
Combat-Related Special Compensation Alternative
Service members who don't qualify for CRDP might qualify for Combat-Related Special Compensation. CRSC provides tax-free payments to veterans whose disabilities are combat-related, including Chapter 61 retirees with fewer than 20 years.
The 2008 NDAA expanded CRSC eligibility to include Chapter 61 and TERA retirees regardless of service length. Veterans must prove disabilities resulted from armed conflict, hazardous duty, simulation of war or instrumentality of war. CRSC compensates combat-related disabilities specifically and is tax-free. CRDP restores retirement pay regardless of combat relation, but it is taxable. Veterans eligible for both choose one annually during open season.
CRDP requires no application. The Defense Finance and Accounting Service automatically determines eligibility. Veterans who believe they qualify but aren't receiving payments should contact DFAS at 800-321-1080. CRSC requires application through each service branch with documentation proving disabilities are combat-related.
The Policy Debate
Congress has debated expanding CRDP eligibility multiple times. Proposals have sought to eliminate the 20-year requirement for Chapter 61 retirees or reduce the minimum VA rating from 50%.
Opponents argue this would constitute double payment for the same disability since both military disability retirement and VA compensation address the same conditions. Advocates respond that the distinction punishes service members whose disabilities prevent them from reaching 20 years.
Cost estimates for expansion range from hundreds of millions to billions over 10 years. Budget constraints have prevented expansion despite repeated legislative attempts.
Planning for Medical Retirement
Service members facing potential medical retirement should consult installation legal assistance offices and disability evaluation system counselors. Financial counselors can model different retirement scenarios. Veterans service organizations provide guidance on VA claims and ratings.
The decision involves more than finances. Quality of life, family considerations, and health trajectory all matter. But understanding CRDP eligibility and the 20-year threshold is essential for informed decisions about military medical retirement.
Sources: Congressional Research Service, "Concurrent Receipt of Military Retired Pay and Veteran Disability: Background and Issues for Congress" (2025). Department of Defense, "Concurrent Retirement and Disability Payment (CRDP)" (2025). Defense Finance and Accounting Service, "Concurrent Military Retired Pay and VA Disability." Military Officers Association of America, "Concurrent Retirement and Disability Pay (CRDP)" (2019). 10 U.S.C. § 1414. Military.com, "CRDP Gives You Military Retirement and Disability Pay at the Same Time" (2025). Military Disability Made Easy, "Concurrent Retirement and Disability Pay (CRDP)" (2024).
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