RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

CRDP UPDATE September 14, 2008

Posted by Service Officer on September 14th, 2008

As previously reported, last year’s National Defense Authorization Act authorized full, immediate concurrent receipt for disabled retirees rated as “Individually Unemployable” (IU) by the VA. The provision takes effect 1 OCT 08 with payment retroactive to 1 JAN 05. It is estimated that 50,000 are eligible to receive these increased payment amounts. According to Defense Finance and Accounting Service (DFAS), the increase in IU payment will come in the November check. DFAS says, “Retirees will not need to take any action in order to receive this increased benefit amount. The Defense Finance and Accounting Service receives this information from the DVA [Department of Veterans' Affairs] on a regular basis.” In recent contact with DFAS, we are told that the retroactive payment is being worked out. While there is no clear timeline for these back-payments, DFAS informs us that a lump sum payment will be made once the calculation of individual payments is final.

To qualify for the CRDP entitlement, the retiree must have 20 years of service or retired under Temporary Early Retirement Authority (TERA), must be in receipt of retired pay, in receipt of DVA compensation, rated 50 percent or higher by the DVA. Those rated by the DVA as IU, are compensated at the 100 percent rate in accordance with the DVA disability compensation basic rates. Payment is not a separate payment but reduces the dollar for dollar offset that retiree’s give up for every dollar they receive from the DVA. This will eliminate the offset and give retirees in this category all of their retired pay, and they will continue to receive the DVA compensation as they have been all along. In addition, to receive the additional compensation amount, the retiree must be receiving compensation at a disability rating not less than 60 percent and be rated IU. Additional information can be found at the DFAS site: DFAS-IU Information. [Source: NAUS Weekly Update 5 Sep 08 ++]

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