OSDRI Legal News

LUNCH & LEARNS

CDRP: What you need to know

What is CRDP?

The National Defense Authorization Act of 2004 established CRDP, effective January 1, 2004. DoD is responsible for administering this program, the intended purpose of which was to phase out the offset of MRP for VA disability compensation over a 10-year period.

CRDP restores some or all of that portion of MRP a veteran waived in order to receive VA disability compensation.

CRDP is subject to all of the same laws and regulations that apply to MRP, including reductions  for

• taxes
• child support or alimony
• garnishments, and
• government debts.

When Does It Apply?

Veterans may qualify for CRDP if they:

• are a military retiree with a combined disability rating of at least 50%, and
• meet one of the following requirements:
  • retired based on length of service (including veterans who were retired under the Temporary Early Retirement Authority (TERA));
  • retired based on disability (10 U.S.C. Chapter 61) with at least 20 years of active service; or
  • retired from a Reserve component with 20 qualifying years of service and has reached retirement age (generally age 60).1

How Does It Work?

DFAS handles most MRP accounts. At some Regional Offices, the same employee who serves as an RO’s Military Records Specialist may also serve as the RO’s MRP Coordinator. Regional offices (ROs) appoint someone to act as Military Retired Pay (MRP) Coordinator and serve as the authorization activity’s single point of contact (POC) for telephone inquiries to the Defense Finance and Accounting Service (DFAS).