Here is what the VA says: "Simply put, Concurrent Receipt means that qualified military retirees will be paid both their full military retirement pay and VA disability compensation. This recently passed law phases out the VA disability offset, which means that military retirees with 20 or more years of serve and a 50% (or higher) VA rated disability will no longer have their military retirement reduced by the amount of their VA disability compensation. This program is run by the Department of Defense. It is not a VA program. If you are qualify for concurrent receipt, you should have automatically received an increase in your military retirement starting in Janauary 2004. To qualify for concurrent receipt you must: Be a military retiree with 20 or more years of service. This includes Chapter 61 Medical Retirees with 20 years or more, or National Guard and Reserve with 20 or more good years. Have a service related VA disability of 50% or higher. To investigate further, please contact the Defense Finance and Accounting Service (DFAS) at 1-800-321-1080. "

CRDP is a restoration of military retirement benefits and is taxable. Sorry, but the court is correct.