Concurrent Retirement and Disability Pay (CRDP) in Arizona

CRDP eligibility is established under 10 U.S.C. § 1414 and requires you to meet strict military service and VA disability criteria. You must have completed at least 20 years of active duty, Reserve, or National Guard service and be entitled to military retirement pay based on that service length. The VA must also rate you as at least 50% disabled from service-connected conditions under 38 U.S.C. § 1114, or you must have any VA disability rating if you have completed 20 or more years of creditable service.

Discharge requirements state you must have received a discharge under honorable conditions from your final period of service. All military service eras qualify—Vietnam, Gulf War, Operation Enduring Freedom, Operation Iraqi Freedom, and all other service periods are eligible. There is no income or asset limit for CRDP eligibility; the benefit is not means-tested under 38 C.F.R. § 3.5.

Surviving spouses and dependents do not receive CRDP directly, but the Survivor Benefit Plan (SBP) can continue after the retiree's death under 10 U.S.C. § 1450, and VA Dependency and Indemnity Compensation (DIC) may be payable to survivors. You cannot double-dip: CRDP replaces the prior election between receiving retirement or disability pay, allowing you to collect both simultaneously for the first time.

The VA determines service-connection and disability rating; the military retirement system verifies 20-year service credibility. Once both eligibility criteria are met, CRDP is automatic if you apply or request the election. No waiting period applies once the VA rates you at 50% or higher with 20+ years of service.

For 2024, VA disability compensation rates under 38 U.S.C. § 1114 are:

10% disabled: $201.46/month 20% disabled: $392.35/month 30% disabled: $605.11/month 40% disabled: $855.20/month 50% disabled: $1,053.17/month 60% disabled: $1,272.61/month 70% disabled: $1,544.95/month 80% disabled: $1,789.99/month 90% disabled: $1,963.27/month 100% disabled: $4,531.35/month

These rates are combined with your full military retirement pay, paid separately by the Defense Finance and Accounting Service (DFAS). Dependents add approximately $80–$160/month per child and $200–$400/month for spouse rating adjustments. All CRDP payments are tax-free under federal law. The VA applies annual COLA (Cost of Living Adjustment) increases effective December 1st each year, typically 3–8% depending on inflation indices.

Arizona provides no supplemental CRDP benefit, as CRDP is a purely federal programme established under 10 U.S.C. § 1414 and administered solely by the VA and the Department of Defense. Arizona does not layer additional state disability or retirement payments on top of CRDP.

However, Arizona does offer other veterans benefits that may apply to CRDP recipients. Arizona provides a property tax exemption for totally and permanently disabled veterans (100% VA rating) under Arizona Revised Statutes § 42-111, which allows exempt property from county property tax rolls. CRDP recipients rated at 100% automatically qualify for this exemption, potentially saving $100–$500+ annually depending on home value and county rates.

Additionally, Arizona offers in-state tuition for veterans and their dependents at state universities and community colleges, and a state-level veteran housing grant programme through the Arizona Department of Housing. CRDP recipients are eligible for these programmes based on their veteran status, not the CRDP election itself. Arizona also waives hunting and fishing license fees for 100% disabled veterans. For specific state-level benefit stacking, contact your county veterans service officer (CVSO) or the Arizona Department of Veterans Services.

CRDP claims are denied most frequently because applicants do not meet the 20-year military service requirement or do not have a VA disability rating of 50% or higher at the time of application. The VA will reject incomplete applications lacking proof of military retirement eligibility (DFAS statement of service) or a current disability rating decision letter. Ensure your DD-214 is certified and reflects exactly 20 years of creditable service; even 19 years 11 months will disqualify you.

A second common reason is application before VA rating approval. You cannot apply for CRDP until the VA has issued a formal disability rating decision under 38 U.S.C. § 1114. If you are still in the VA claims process, wait for your rating letter before submitting VA Form 21-8951. The VA will deny premature applications automatically.

Third, applicants sometimes submit the wrong form or use outdated instructions. Always use the current VA Form 21-8951 (dated within the last 12 months) and file through VA.gov or eBenefits, not through state offices. Paper forms sent to wrong addresses cause 4–8 week delays or loss.

Fourth, discharge character matters: any discharge other than honorable (Bad Conduct, Dishonorable, or Other Than Honorable) will disqualify you under 10 U.S.C. § 1414. If you have a non-honorable discharge but meet all other criteria, request a discharge upgrade through the VA or your branch of service before applying.

Finally, ensure DFAS confirms your military retirement is active and vested. If your retirement account was never established or was closed, CRDP cannot be processed. Contact DFAS at (800) 321-1080 to verify your retirement record before submitting your VA application.

If your CRDP application is denied, you have three appeal lanes under 38 U.S.C. § 7101 and 38 C.F.R. Part 20:

**Lane 1: Supplemental Claim (Quickest).** File VA Form 20-0995 within one year of the denial decision. Use this lane if you have new evidence the VA did not consider (e.g., corrected DD-214, updated DFAS retirement verification, or additional service records). The VA will re-evaluate and issue a new decision within 120 days. No in-person hearing required. This lane succeeds 40–50% of the time when new evidence is compelling.

**Lane 2: Higher-Level Review (HLR).** File VA Form 20-0996 within one year of denial. Request an HLR if you believe the VA misapplied the law or made a factual error (e.g., miscalculated your service years or misread your disability rating). A senior VA adjudicator reviews your file without new evidence. Decision within 120 days. No hearing required, but you can request a phone conference. HLR suits legal/procedural errors.

**Lane 3: Board of Veterans' Appeals (BVA).** File VA Form 10182 (Notice of Disagreement) within one year of denial. The BVA is an independent appellate body under 38 U.S.C. § 7101. You can request a video or in-person hearing in Phoenix or request a decision on the written record. BVA hearings are thorough but can take 12–24 months. Use this lane for complex cases involving service history disputes or disability rating disagreements.

All appeals are free. You are entitled to free representation from an accredited VA-recognized VSO (Veterans Service Organization) or VA-accredited attorney. Contact your county VSO (see state contact info above) to request free appeal assistance. Deadlines are strict: if you miss the one-year window from the original denial, you forfeit appeal rights and must file a new application.