Concurrent Receipt of Military Retired Pay and Veteran Disability: Background and Issues for Congress [Updated March 25, 2020] [open pdf - 1MB]
From the Summary: "'Concurrent' receipt in the military context typically means simultaneously receiving two types of federal monetary benefits: military retired pay from the Department of Defense (DOD) and disability compensation from the Department of Veterans Affairs (VA). Prior to 2004, existing laws and regulations dictated that a military retiree could not receive two payments from federal agencies for the same purpose; military retired pay and VA disability compensation were considered to fall under that restriction. As a result, military retirees with physical disabilities recognized by the VA had their (taxable) military retired pay 'offset', or reduced dollar-for-dollar, by the amount of their (nontaxable) VA compensation. Legislative activity on the issue of concurrent receipt began in the late 1980s and culminated in the provision for Combat-Related Special Compensation (CRSC) in the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (P.L. 107-314). Since then, Congress has added Concurrent Retirement and Disability Payments (CRDP) for those retirees with a disability rated at 50% or greater, extended concurrent receipt to additional eligible populations, and further refined and clarified the program. Concurrent receipt is applicable only to persons who are both (1) military retirees and (2) eligible for VA disability compensation. An eligible retiree cannot receive both CRDP and CRSC. The retiree may choose whichever is most financially advantageous to him or her and may make benefit changes during an annual open season."
CRS Report for Congress, R40589
Congressional Research Service: https://crsreports.congress.gov/