Military Retirement Pay and VA Disability: Offsets, CRDP & CRSC

Retirement planning guide • Updated October 2, 2026

Adding full military retired pay to full VA disability compensation can overstate income. The VA waiver and any concurrent-pay entitlement determine how those amounts work together.

Start with the VA waiver

Without a qualifying concurrent-pay benefit, retired pay is generally waived dollar-for-dollar for VA compensation, up to the amount of gross retired pay. Retirement Ready models that waiver as the smaller of the two amounts.

For an illustrative $2,500 gross military pension and a $1,000 VA award, the waiver is $1,000. Military pay after the waiver is $1,500; adding the separate $1,000 VA payment gives $2,500 before selected deductions. Simply adding $2,500 and $1,000 would double-count the waived portion.

CRDP can restore qualifying retired pay

Concurrent Retirement and Disability Pay applies to eligible retirees under specific rules, including a combined VA rating of at least 50%. Retirement type, service and applicable Reserve pay age matter. Chapter 61 cases can have restoration limits based on hypothetical longevity pay.

A VA percentage alone is not enough to establish eligibility. Use official retirement and award records when choosing the app’s concurrent-pay scenario.

CRSC uses an approved award

Combat-Related Special Compensation requires an award from the relevant service. In the app, enter the actual approved CRSC amount rather than treating a VA rating as a CRSC award. The estimate applies waiver and applicable longevity limits.

CRDP and CRSC are alternatives in the calculation. They are not two extra benefits to stack together. For an official comparison or election, consult DFAS and your service’s CRSC office.

Use the right VA compensation amount

The app includes 2026 VA compensation tables effective December 1, 2025. Dependents can affect the amount. Enter the combined rating from your VA decision; the app does not combine individual condition ratings.

For special monthly compensation or other individual award adjustments, use the actual awarded monthly amount. Awarded individual unemployability and the combined rating are separate inputs where relevant.

Check the remaining deductions

Selected SBP premiums and other entered deductions can reduce military pay received. Results are before tax and do not establish tax treatment or benefit entitlement.

Review the calculation methodology and High-36 pay-base guide before interpreting a result.