CBO Recommends Eliminating Concurrent Receipt

CBO Recommends Eliminating Concurrent Receipt

The Congressional Budget Office (CBO), the federal agency within the legislative branch of government that provides budget and economic information to Congress, recently issued a report with options for reducing the federal deficit. One of the options provided by the CBO, is the elimination of concurrent receipt of retirement pay and disability compensation for disabled former service members. This was not a recommendation, but one of many options provided to Congress in the report. There is no move in Congress to implement this CBO option. 

“Concurrent receipt” means to receive both the full amount of the service-earned military retired pay and the full amount of the Department of Veterans Affairs (VA) disability compensation. Up until FY 2001, however, any retired service member who received VA disability compensation had that amount of VA compensation deducted from their military retired pay. This is referred to as an “offset.” FRA supports payment of full military retired pay and veterans’ disability compensation for all disabled retirees. 

Since 2001 FRA has made progress in achieving its goal of comprehensive concurrent receipt reform. There are two separate Department of Defense programs for disability compensation: Combat Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP). All those who receive CRSC receive concurrent receipt. Military retirees receiving CRDP with 20 or more years of service, and a 50 percent or higher service-connected disability rating, have concurrent receipt. CRDP beneficiaries with less than 50 percent disability rating and also those medically retired with less than 20 years of service (Chapter 61), are not eligible for concurrent receipt. Legislation has been introduced to provide comprehensive concurrent receipt reform (H.R. 333 & S. 66).  Members are urged to use  the FRA Action Center to ask their legislators to support these legislative proposals. 

Disclaimer: The opinions expressed within this article are the views of the writer and do not necessarily reflect the views and opinions of FRA.

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