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Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation for Disabled Veterans (

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Have anyone out there read anything about this. I think this is one of the steps the Donald is trying to enforce to cut the budget, and the scary part of it is , it will work and take effect 2018. This is gong to hurt a lot of Vet's that depend on that second income to make ends meet. A retirement check from service is not enough to get you over the hump.  

Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation

for Disabled Veterans





Note: This option would take effect in October 2014.



Military service members who retire-either following 20 or more years of

military service under the longevity-based retirement program or early

because of a disability-are eligible for retirement annuities from the

Department of Defense (DoD). In addition, veterans with medical conditions

or injuries that were incurred or worsened during active-duty military

service (excluding those resulting from willful misconduct) are eligible for

disability compensation from the Department of Veterans Affairs (VA).


Until 2003, military retirees who were eligible for disability compensation

could not receive both their full retirement annuity and their disability

compensation. Instead, they had to choose between receiving their full

retirement annuity from DoD or receiving their disability benefit from VA

and forgoing an equal amount of their DoD retirement annuity; that reduction

in the retirement annuity is generally referred to as the VA offset. Because

the retirement annuity is taxable and disability compensation is not, most

retirees chose the second alternative.


As a result of several laws, starting with the National Defense

Authorization Act for 2003, two classes of retired military personnel who

receive VA disability compensation (including those who retired before the

enactment of those laws) can now receive payments that make up for part or

all of the VA offset, benefiting from what is often called concurrent

receipt. Specifically, retirees whose disabilities arose from combat are

eligible for combat-related special compensation (CRSC), and veterans who

retire with 20 or more years of military service and who receive a VA

disability rating of 50 percent or more are eligible for what is termed

concurrent retirement and disability pay (CRDP). CRSC is exempt from federal

taxes, but CRDP is not; some veterans would qualify for both types of

payments but must choose between the two.


This option would eliminate concurrent receipt of retirement pay and

disability compensation beginning in 2015: Military retirees currently

drawing CRSC or CRDP would no longer receive those payments, nor would

future retirees. As a result, the option would reduce federal spending by

$108 billion between 2015 and 2023, the Congressional Budget Office



In 2012, of the roughly 2 million military retirees, about half were subject

to the VA offset; about 40 percent of that latter group-or 420,000

retirees-got concurrent receipt payments totaling $7 billion. Spending for

concurrent receipt, which was just over $1 billion in 2005, has climbed

sharply because of both an expansion of the program and an increase in the

share of military retirees receiving disability compensation. In particular,

the share of military retirees receiving a longevity-based retirement

annuity who also receive disability compensation rose from 33 percent in

2005 to 45 percent in 2012.


One argument for this option is that disabled veterans would no longer be

compensated twice for their service, reflecting the reasoning underlying the

creation of the VA offset. However, military retirees who receive VA

disability payments would still receive higher after-tax payments than would

retirees who are not disabled and who have the same retirement annuity

because VA disability benefits are not taxed.


An argument against this option is that the DoD retirement system and the VA

disability program compensate for different characteristics of military

service: rewarding longevity in the former case and remunerating for pain

and suffering in the latter. In addition, a determination of disability by

VA is a gateway to receiving other VA services (such as health care or

vocational training), yet many veterans consider the disability-rating

process onerous. If fewer retirees applied for VA disability compensation

because concurrent receipt was no longer available, some veterans might

bypass other VA services for which they would be entitled otherwise.

Moreover, some retirees would find the loss of income financially difficult.


What does this mean?  Retirees receiving 50% or greater disability rating

get a full retirement and disability compensation check. If your rating is

less than 50% you are still receiving their disability benefit from VA and

forgoing an equal amount of their DoD retirement annuity.



Article from 2016

Congressional Budget Office Suggests Elimination of Concurrent Receipt for

Disabled Military Retirees



In a report entitled 'Eliminate Concurrent Receipt of Retirement Pay and

Disability Compensation for Disabled Veterans', the Congressional Budget

Office offers up Concurrent Receipt as an option to reduce the federal

budget out to 2026. Granted, they are just doing their jobs, but when things

like this make it on to lists, they start to take on a life of their own.

Since the CBO estimates the Federal Budget could save $139 Billion over the

next 10 years, someone is going to take a serious look at this.


For those of you unfamiliar with Concurrent Receipt, it is a payment system

which compensates military retirees for their service connected

disabilities. Until 2003, military retirees were not provided the same level

of compensation as nonretired disabled Veterans were receiving. Rather than

getting their full retirement annuity and their disability compensation,

they had to choose between receiving their full retirement annuity from DoD

or receiving their disability benefit from VA and forgoing an equal amount

of their DoD retirement annuity; that reduction in the retirement annuity is

typically referred to as the VA Offset. Because the retirement annuity is

generally taxable and disability compensation is not, most retirees chose

the second alternative.


 The problem is that the two pays are for different purposes. Military

retirement is just that; to pay for loyal service lasting 20 or more years,

while disability compensation is meant to renumerate for pain, suffering and

loss of physical function during military service. To combine the two, takes

the physical well being of career service members for granted, by not fully

compensating them for their service connected disabilities.


Fortunately, the 2003 NDAA set a timetable for correcting the VA Offset and

now retirees recieve full VA disability benefits in addition to their

retirement pay. This CBO proposal shows that a bean counter wants to once

again strip retirees of their fair VA disability compensation. Read the full

proposal at www.cbo.gov/budget-options/2016/52177 and keep an eye and ear

out for any attempts to adopt this strategy as law.




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The CBO has recommended cutting this every chance they can for years, but nothing has changed.

In my opinion, it should be expanded to all retired veterans, not just those with ratings of 50%+, because they earned their retirement and disability compensation is a completely different thing.

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Guest L

Vync is correct - I researched as early as 2005 & the same verbiage is in each request. This is not to say it will not happen, but to acknowledge it has been addressed and not passed.  

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I too have tracked this information forum since it presented itself to me in 08. If we didn't have DAV to fight for our rights and the Vet's on the ground and information highway to keep us in the loop things like this will pass without a battle.

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