Congress requires that when an individual receives VA disability compensation, there is a dollar for dollar reduction in any military retired pay. The net effect for this veteran was that it wasn't worth the trouble applying for an increased disability as his injuries were aggravated over time, because an increase in disability would decrease his pension.Two changes in 2004 partially fix this problem, but you may have to take action.
1) Concurrent Retirement and Disability Pay (CRDP)
If your disability rating is at least 50%, the Concurrent Retirement and Disability Pay (CRDP) program gradually restores your VA disability offset.
You do not need to apply for CRDP; if qualified, you will be enrolled automatically. However if you haven't bothered filing for an increase in your disability rating because the compensation was being offset, you might consider with worth it now.
Remember, you must be eligible for retired pay to qualify for CRDP, and have a VA disability rating of 50 percent or greater. If you're rated at 40%, the program does nothing for you. This cut-off may make it worth the effort of seeing if you're eligible for a higher rating, especially if the effect of injuries get worse with age.
2) Combat-Related Special Compensation (CRSC).
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| Military Retired With Purple Heart? Check Out CRSC! |
This program provides a special monthly payment equivalent to portion of the offset to military retired pay due to receipt of VA disability compensation determined to be combat-related. Qualified individuals include any military retired members with an offset to retired pay due to VA compensation determined to be combat-related. CRSC is not a restoration of retired pay, rather it is a special compensation.
- To receive CRSC benefits, retirees must apply with their Branch of Service on a DD Form 2860. It is not automatic; you must apply.
- Initial benefits were payable only to members with at least 20 years of active duty or equivalent reserve duty (i.e. 7200 points) who had combat-related disabilities totaling a rating of 60% or more, or with a rating of 10% or more for combat-related injuries for which they were awarded a Purple Heart.
- Effective January 1, 2004, eligibility was extended to members with any level of VA rating for combat-related disabilities or Purple Heart which results in an offset to military retired pay.
- The VA recently expanded coverage to those suffering from the following medical conditions associated with Agent Orange:
- Ischemic Heart Disease
- Parkinson's Disease
- Hairy Cell Leukemia
- Other Chronic B-cell Leukemia.
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