For veterans who retire due to service-related injuries or illnesses, understanding the relationship between military medical retirement and VA disability benefits is essential.
These two systems provide financial support to veterans, but the rules surrounding how they work together can be complex. In this article, we’ll break down the interaction between military retirement and VA disability pay, answer common questions, and provide links to valuable resources.
Can You Receive Military Medical Retirement and VA Disability?
Yes, veterans can receive military medical retirement and VA disability benefits at the same time, but how much you receive depends on the type of retirement and your VA disability rating.
There are two types of medical retirements:
- Temporary Disability Retirement List (TDRL): For veterans who have disabilities that may improve or change. Veterans on TDRL receive a minimum of 50% of their base pay. For more on TDRL meaning, you can check the VA’s page on military disability pay.
- Permanent Disability Retirement List (PDRL): For veterans whose conditions are not expected to improve. Veterans on PDRL receive retirement pay based on their years of service or disability percentage, whichever provides the greater benefit.
Veterans can also receive VA disability benefits, but their retirement pay may be offset by these payments unless they qualify for programs like Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC).
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VA Disability and Military Retirement Pay: Understanding the Interaction
When veterans qualify for both VA disability and military retirement, their retirement pay may be reduced by the amount of their VA benefits due to a process known as the VA Waiver. This can result in reduced retirement pay, but the VA disability benefits are tax-free, which can offset the reduction.
Veterans with a 50% or higher VA disability rating may qualify for Concurrent Retirement and Disability Pay (CRDP), which allows them to receive both full retirement pay and VA disability pay without an offset. For more details, visit the DFAS website.
Can You Receive 100% VA Disability and Military Retirement Pay?
Yes, veterans with a 100% VA disability rating may receive both VA disability pay and military retirement pay concurrently. Veterans rated 100% are often eligible for CRDP, which allows them to receive both forms of compensation in full.
If your disability is combat-related, you may also qualify for Combat-Related Special Compensation (CRSC), which provides additional payments on top of your VA disability and retirement. For more information, check out the CRSC guide.

Does VA Disability Affect Military Retirement Pay?
VA disability payments can affect military retirement pay due to the VA Waiver. However, veterans who qualify for CRDP or CRSC can receive both payments without an offset. For more information on how these programs work, visit the myarmybenefits page.
To see how your current disabilities aggregate to a total VA Disability rating, see our VA Disability Calculator.
PDRL and VA Disability
Veterans placed on the Permanent Disability Retirement List (PDRL) can receive both PDRL retirement pay and VA disability benefits. However, as with other forms of retirement, there may be an offset unless the veteran qualifies for CRDP or CRSC. Understanding your eligibility for these programs is essential to maximizing your benefits.
Getting Medically Retired for PTSD
Veterans who suffer from severe PTSD or other mental health conditions may be eligible for medical retirement. The process involves a thorough medical evaluation to determine whether the condition significantly impacts the veteran’s ability to perform their duties. Veterans with a disability rating of 30% or higher may qualify for medical retirement, and those with a higher VA disability rating may receive increased compensation.
For more detailed guidance on PTSD-related claims, check out this VA claims guide.
Can You Collect Military Retirement and VA Disability?
Yes, but the interaction between these two payments depends on your disability rating and retirement status. Veterans with a 50% or higher disability rating may be able to collect both without an offset through CRDP. For more information on how to apply, visit MyArmyBenefits.
Navigating the world of military medical retirement and VA disability benefits can be complex, but understanding the basics can help you maximize your benefits. Veterans can often receive both types of compensation, but the amount depends on their disability rating, type of retirement, and eligibility for programs like CRDP and CRSC. Be sure to consult the VA and DFAS to ensure you’re receiving all the benefits you’re entitled to.
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