Question 1

How the Offset Works

Accepted Answer

If you receive $3,000/month in retirement pay and $1,500/month in VA disability, your retirement pay is reduced to $1,500. Total income stays the same ($3,000) but $1,500 is now tax-free VA pay.

Question 2

CRDP Restoration

Accepted Answer

Concurrent Retirement and Disability Pay restores the offset for retirees with 50%+ VA disability. You receive BOTH full retirement AND full VA disability. CRDP is taxable.

Question 3

CRSC Restoration

Accepted Answer

Combat-Related Special Compensation restores the offset for combat-related disabilities at any percentage. CRSC is TAX-FREE, making it potentially more valuable than CRDP.