Consolidate retirement and disability compensations

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VA Services and Retirement

Consolidate retirement and disability compensations programs

Until 2003, it was not possible for retirees to receive both full retirement benefits and disability compensation; instead, they had to choose between DOD retirement annuity or VA disability benefits. However, two classes of retirees -- those with combat-related disabilities and those who retire with at least 20 years of military service and receive a VA disability rating of at least 50 percent -- have since been receiving combat-related special compensation (CRSC) or concurrent retirement and disability pay (CRDP), respectively. These payments make up for the difference in the VA offset. Ending these payments would more accurately reflect the intent of the original legislation while avoiding duplicative payments and saving billions.

SAVINGS

$139 billion over 10 years

STATUS

LINKS

CBO: Options for Reducing the Deficit: 2017 to 2026 (pg. 34)

“If we are going to effectively tackle the long-term national security threat posed by our national debt, then we need to seriously examine how our defense dollars are being spent. Waste and inefficiency within the Pentagon not only contributes to our nation’s debt and deficit, it also diminishes the effectiveness of our nation’s armed forces."

Dan Caldwell, USMC (ret.)
Concerned Veterans for America

“I'm concerned that our increasing fractious political process, particularly with respect to federal spending, is threatening our ability to properly defend our nation both in the short term and especially in the long term."

Dan Coats
Director of National Intelligence

“This guide is a much-needed first step toward encouraging politicians to consider all available options for substantive Pentagon reform. Our troops deserve better than broken bureaucracy, and politicians shouldn't fool themselves into thinking that throwing money at the problem is the solution."

Capt. Dan Grazier, USMC (ret.)
Project on Government Oversight

Solutions

Pursuing Smart Tradeoffs

VA Services and Retirement