I have an important question about CRDP.An assistant counsel at DFAS, says that crpd is restoration of retired pay, however if you were receiving disability retired pay before ,when crdp was started it restores disability retired pay. A calif superior court recently ruled in a recent decision, that CRDP is restoration of military retirement benefits not military disability pay and is therefore can be divided in divorce court.He also said that the opinion of an attorney is useful but it is the court that determines the law.Do you have an opinion on this .I have no idea who is right or if the judge's stands anyway. It is his "Final Statement of Decision" after 2.5 years of court battle.
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.