Concurrent Retirement and Disability Pay (CRDP) in Louisiana

CRDP eligibility requires meeting all of the following criteria established under 10 U.S.C. § 1414. First, the veteran must have at least 20 years of active duty service in the military (Army, Navy, Air Force, Marine Corps, or Coast Guard). Service must be honorable, documented by a DD Form 214 with a discharge code of HD, HN, or similar honorable designation.

Second, the veteran must have a VA disability rating of at least 50 percent as determined by the VA Regional Office. This rating is based on service-connected disabilities evaluated under 38 U.S.C. § 1112 and 38 C.F.R. § 3.156. The disability rating does not need to be for a single condition; it can be a combined rating from multiple service-connected conditions.

Third, the veteran must be in receipt of military retirement pay from the Department of Defense. The retirement pay must be based on the aforementioned 20-year service requirement. Reservists and National Guard members with 20 qualifying years of service are also eligible under 10 U.S.C. § 1414(b).

As of December 1, 2023, CRDP is no longer limited by disability rating thresholds for most service members. All retirees with 20+ years of active duty and a 50%+ VA disability rating qualify for concurrent receipt. Previously, CRDP was granted on a case-by-case basis; now it is a presumptive entitlement. Surviving spouses and dependents of deceased retirees do not receive CRDP directly but may be eligible for Dependency and Indemnity Compensation (DIC) if the retiree's death is service-connected. There are no income or asset limits for CRDP eligibility; the benefit is not means-tested.

CRDP payments consist of two separate components paid monthly in 2024: Military Retirement Pay (determined by the Department of Defense based on years of service and rank at retirement) plus Full VA Disability Compensation.

2024 VA Disability Compensation Rates (monthly) include the following: 50% disability rating: $1,218.13; 60% disability rating: $1,539.70; 70% disability rating: $1,902.75; 80% disability rating: $2,207.97; 90% disability rating: $2,477.90; 100% disability rating: $3,737.85.

For veterans with dependents, these rates increase. For example, a veteran with 50% rating and one dependent receives $1,337.13; with spouse and one child: $1,456.13. A veteran with 100% rating and spouse receives $3,876.85; with spouse and one child: $3,982.85.

Military retirement pay varies based on branch of service, rank at retirement, and years of service. A typical formula is: (Years of Service ÷ 2.5) × Monthly Base Pay. For example, a E-7 with 20 years of service retiring with $5,000 monthly base pay would receive approximately $40,000 annually in military retirement.

CRDP recipients receive the full amount of both payments without reduction. Under prior law, military retirement was offset (reduced) by VA disability compensation; CRDP eliminates this offset. All rates are adjusted annually for Cost of Living Adjustments (COLA), typically in December.

Louisiana does not provide state-specific supplemental CRDP payments or additional concurrent receipt benefits beyond the federal program. CRDP is exclusively a federal benefit administered by the U.S. Department of Defense for military retirees and by the VA for disability compensation.

However, Louisiana recognizes CRDP recipients in several state-specific programs and benefits. Military retirees receiving CRDP are eligible for Louisiana's Property Tax Exemption for Disabled Veterans if they meet the disability percentage requirement. Additionally, CRDP recipients with service-connected disabilities may qualify for Louisiana's Disabled Veterans License Plate program, which provides free vehicle registration and special parking privileges.

Louisiana also honors CRDP recipients in the state's Veterans' Preference for state employment. Military retirees with CRDP status are granted employment preference points when applying for civil service positions within Louisiana state government, subject to the Hiring Preferences for Louisiana Military Veterans statute.

While Louisiana does not augment CRDP payments, the state recognizes the importance of supporting concurrent receipt recipients through property tax relief, vehicle registration benefits, and employment preference. Louisiana veterans who receive CRDP should separately apply for state disability tax exemptions and vehicle license benefits through the Louisiana Department of Revenue and Taxation and the Office of Motor Vehicles respectively. These state benefits complement the federal CRDP payment but are administered independently and require separate applications.

While CRDP denials are rare as of December 2023 due to automatic processing, the most common reasons for non-approval or delayed processing involve eligibility verification errors. The primary denial reason is insufficient military service record documentation. Some retirees do not have a properly coded DD Form 214 that the VA can match to their military records in the Defense Enrollment Eligibility Reporting System (DEERS). If your discharge code is not properly recorded as an honorable discharge (HD, HN, or equivalent), the system may flag you for manual review. Solution: Request a certified copy of your DD Form 214 from your branch's personnel records center and submit it to the VA Regional Office.

A second common issue is a VA disability rating below 50%. Even if you have 20+ years of service, CRDP requires at least a 50% combined disability rating. Some retirees receive initial ratings of 40% and do not qualify until they appeal for an increased rating. To address this: File a Request for Reconsideration (VA Form 20-0996) if your initial rating is below 50%, or submit new medical evidence supporting higher-rated conditions.

A third reason for processing delays involves database synchronization errors between the VA and DoD. The systems occasionally fail to match military retirement records with VA disability files, particularly for reservists or National Guard members with non-standard service records. Solution: Contact the VA Regional Office serving Louisiana at (504) 589-7191 or visit the New Orleans VA Medical Center at 1601 Gentilly Boulevard to request a manual eligibility verification.

Fourth, some veterans fail to receive automatic CRDP because they retired before obtaining a VA disability rating. If you retired before filing a disability claim, you must submit a claim after retirement and then resubmit documentation of both your military retirement status (via DFAS letter) and new VA rating to trigger CRDP processing. Building a stronger claim requires submying comprehensive medical evidence, private treatment records, and a nexus letter from a physician linking current conditions to military service.

CRDP eligibility decisions rarely require appeals due to automatic processing as of December 2023. However, if you believe you meet CRDP criteria and have not received payment, or if your VA disability rating was denied and affects your CRDP status, you have three appeal options under the Veterans Appeals Improvement and Modernization Act (AVIA), 38 U.S.C. § 7104.

The first option is the Supplemental Claim lane, filed on VA Form 20-0995. This option is appropriate if you have new evidence (medical records, nexus letters, buddy statements) that was not in your original claim file. You have one year from the date of your denial or latest decision to file a supplemental claim. Processing time averages 4-6 months. This is the fastest option and requires no hearing. Submit the form at VA.gov, by mail to the VA Regional Office, or in person. Use this lane if you can obtain new medical evidence supporting service-connection or higher disability rating.

The second option is the Higher-Level Review (HLR), filed on VA Form 20-0996. This option is appropriate if you believe the rater made an error in interpreting existing evidence. An experienced VA rater will review your file without new evidence and provide a written statement about any errors. The deadline is also one year from your decision date. Processing time averages 4-5 months. This is best used if you believe the original rating decision was clearly incorrect based on the same evidence already submitted.

The third option is a Board of Veterans' Appeals (BVA) hearing, filed on VA Form 10182 (Notice of Disagreement for BVA). This option is appropriate if you want testimony consideration and written decision from a three-judge panel. The deadline is one year from your decision date. Processing time averages 12-18 months currently. You may request a hearing in-person in New Orleans, by videoconference, or on the record (written submission only).

For Louisiana veterans, free help with any appeal is available through the Louisiana Department of Veterans Affairs, accredited VSOs such as the American Legion, Veterans of Foreign Wars (VFW), and the Disabled American Veterans (DAV). Contact the Louisiana Veterans Affairs office at (504) 568-8653 or visit https://www.vets.la.gov/. County veterans service officers also provide free appeal assistance. Do not pay anyone to represent you; all VSO representation is free, and hiring a private claims agent is illegal under 38 U.S.C. § 5904.