To ensure that medically retired veterans can receive both their full retirement pay and VA disability compensation without any offset—regardless of service length or combat-related status—a few key policy changes could be proposed:
Proposed Changes for Medically Retired Veterans’ Full Benefits
Eliminate the Offset Requirement for All Medically Retired Veterans: The primary adjustment would be to remove the rule that requires veterans with a VA disability rating to offset their retirement pay with disability compensation. This would ensure that any veteran retired for medical reasons, whether their injury or condition is combat-related or not, could receive both payments without offset.
Expand Concurrent Retirement and Disability Pay (CRDP) Eligibility: Instead of limiting CRDP eligibility to retirees with 20+ years of service, eligibility could be extended to all medically retired veterans who have a 50% or higher disability rating, regardless of service length. This would bring medically retired veterans in line with those who retire after 20 years and have a high disability rating, recognizing that medical retirement often reflects severe service-related health impacts.
Include All Medically Retired Veterans in Combat-Related Special Compensation (CRSC): Another approach could be to allow all medically retired veterans—whether their condition is combat-related or not—to receive CRSC, provided they have a VA disability rating of 50% or higher. CRSC currently provides tax-free compensation specifically to veterans with combat-related disabilities. Expanding eligibility would support medically retired veterans with non-combat disabilities, recognizing the hardships from all service-related conditions.
Adjust Funding and Budget Allocations: To make these changes sustainable, Congress could increase funding specifically designated for veterans’ benefits. This would ensure that removing offsets for medically retired veterans is financially viable for the government while ensuring full compensation for eligible veterans. Another possible source of funding could be reallocating funds from less critical programs within the Department of Defense or the Department of Veterans Affairs.
Current System Overview
Currently, medically retired veterans without a combat-related disability or 20+ years of service receive VA disability compensation that offsets their retirement pay dollar-for-dollar. This offset effectively reduces their military retirement pay by the amount they receive in VA disability benefits. Veterans with 20+ years of service and a disability rating of 50% or more qualify for Concurrent Retirement and Disability Pay (CRDP), which allows them to receive both payments fully. Meanwhile, medically retired veterans with combat-related disabilities may qualify for Combat-Related Special Compensation (CRSC), a separate, tax-free benefit that helps make up for the retirement pay offset.
This is the policy I came on to request. My father, A Vietnam veteran, died February 28, 2022 and my mother receives nothing because he didn’t die 100% disabled. He in fact died fighting to qualify for 100% disability. It’s a travesty. They even went as far as to go back into his account and take back the money that had been deposited to my mother and father‘s bank account because he died in February and his March distribution had already been deposited. It’s just awful.
I personally know veterans who just give up. They are treated so badly, it’s simply not worth it.
Thank you for creating this website, and thank you for writing this policy. I don’t exactly know how to do it but you did a wonderful job articulating it here.
I am currently married and medically retired, and now 100% disabled veteran of 21 years. My wife is also civilian and recently disabled and filing for SSDI with no guarantees of authorization to receive benefits. At 100% VA disability I am receiving just under $4k a month to live off of with zero backup and that is all for the entire month. I live in Massachusetts and under my current VA disability levels I do not qualify for any extra benefits such as SNAP/EBT because my VA benefits are considered TOO HIGH!? How much more disabled do I need to be!? Plus this states property taxes are ridiculously high…even with some minor city authorized offsets. I believe that anyone who is over 60% disabled and was honorably retired, should be authorized to receive full concurrent retirement benefits as well as VA Disability benefits without offsets. We certainly paid for it through our service and continue to pay for it every single day. I’m hoping to see legislation finally passed that will authorize this!
To ensure Caretakers are not committing fraud by overstating the Veterans’ Health needs. Review and reduce the amount caretakers receive when the Veteran is receiving multiple sources of tax payer funded retirement programs. Currently up to 3 “home” caretakers can apply and in some cases none of the 3 are assisting the Veteran. This encourages fraud and quite frankly could be potentially harmful to the true needs of the Veteran. The current amount a caretaker can receive is equal to an GS4. The caretakers should be audited or reviewed annually with the Veteran present. Ensure VA fraud is reviewed in every area of benefits from VA loans, GI bills and so on. Alter the structure of VA Disability ratings to ensure similarly compliant it SSA. In summary, one should not receive 100% Disability rating and still remain at a full time position especially in a Government position. This particular loophole is extremely abused and keeps those that may possibly need benefits from receiving them due to an inflated budget. We currently have pilots working for Government contractors whom also claim to be 100% Disabled Veterans. Lastly, remove all social media creators that “charge” Veterans to help them “fill out forms untruthfully”. It takes only a small internet search to find these user accounts and many are Veterans. Sorry I did not use a “bill” format but in summary ….please tackle the current egregious and rampant VA benefit fraud.
I have personally not seen fraud, only Vets who are not able to get the disability benefits and their medical needs met. I have only seen the opposit of what you describe here. It’s so sad. Veterans loose the gumption to remain in the fight after giving it all for our country. My father died fighting for 100% disability.
Thank you for your input.