For veterans, understanding the changes to military retirement and disability pay is critical for financial planning. These changes impact not only current income but also long-term financial security. Are you aware of how the Blended Retirement System (BRS) affects your benefits and how concurrent receipt rules could change your monthly income?
Key Takeaways
- The Blended Retirement System (BRS), effective since 2018, combines a reduced defined benefit pension with a Thrift Savings Plan (TSP) requiring active enrollment to receive matching contributions.
- Concurrent Receipt allows eligible veterans to receive both military retired pay and disability compensation without a dollar-for-dollar reduction, offering significant financial relief.
- Changes may be on the horizon to expand eligibility for Concurrent Receipt, particularly for Chapter 61 retirees, potentially increasing their combined retirement and disability income.
Sergeant Major (Retired) Anya Petrova always prided herself on meticulous planning. After 22 years of service, she transitioned to civilian life, confident in her retirement and disability benefits. She planned to settle down in a quiet suburb outside of Columbus, Georgia, near Fort Benning, where she spent a significant portion of her career. But Anya soon discovered that navigating the complexities of military retirement and disability pay was far more challenging than she anticipated. The changes to military retirement and disability pay, particularly concerning concurrent receipt, threw a wrench in her carefully laid plans.
Anya, like many veterans, was initially confused by the interplay between her retirement pay and disability compensation. She knew about the Blended Retirement System (BRS), which came into effect in 2018, but wasn’t sure how it differed from the legacy retirement system. The BRS, as the Department of Defense explains here, combines a reduced defined benefit pension with a Thrift Savings Plan (TSP), offering a more portable retirement benefit but requiring active participation for maximum gains.
Under the legacy system, service members receive a larger pension after 20 years of service. The BRS, however, offers a slightly smaller pension (2.0% per year of service vs. 2.5% under the legacy system) but includes government matching contributions to the TSP. For those who serve less than 20 years, the BRS can be more advantageous due to the TSP contributions. But for Anya, who served over 20 years under the legacy system before the BRS was implemented, the decision was already made.
The real shock came when Anya learned about Concurrent Receipt. This provision allows eligible veterans to receive both military retired pay and disability compensation from the Department of Veterans Affairs (VA) without a dollar-for-dollar reduction. Before Concurrent Receipt, veterans’ retirement pay was often reduced by the amount of their disability compensation, a policy known as the “VA offset.”
Several programs exist under the umbrella of Concurrent Receipt, including Concurrent Retirement and Disability Payments (CRDP) and Combat-Related Special Compensation (CRSC). CRDP restores retirement pay that was previously offset due to VA disability payments. CRSC, on the other hand, provides compensation for disabilities that are directly related to combat. The specific eligibility requirements and amounts vary depending on the program and the veteran’s circumstances. You can find more details on the VA’s website here.
Anya’s initial calculations didn’t account for Concurrent Receipt, leading her to believe she would have significantly less income than she actually received. “I remember sitting at my kitchen table, spreadsheets spread out everywhere, feeling completely overwhelmed,” Anya told me during a recent veterans’ event in Columbus. “I thought I had planned for everything, but the nuances of Concurrent Receipt completely threw me for a loop.”
This is where many veterans stumble. It’s not enough to simply know that Concurrent Receipt exists; understanding the eligibility criteria and how it applies to your specific situation is crucial. For example, veterans with a disability rating of 50% or higher are generally eligible for CRDP. However, there are exceptions and specific rules that can affect the amount of restored retirement pay. As someone who volunteers with the Georgia Department of Veterans Service, I’ve seen firsthand the confusion and frustration these rules can cause.
To further complicate matters, Anya discovered she might be eligible for additional benefits under Chapter 61 of Title 10, U.S. Code. Chapter 61 covers medical retirement, meaning service members who are medically retired due to a disability incurred during service. These retirees often face unique challenges when it comes to Concurrent Receipt. Currently, Chapter 61 retirees who have less than 20 years of service may not be eligible for full Concurrent Receipt, resulting in a significant financial disadvantage. Changes to military retirement and disability pay are being considered to address this inequity.
I had a client last year, a former Marine, who was medically retired after 12 years of service due to injuries sustained in Afghanistan. He was shocked to learn that his retirement pay was significantly reduced due to the VA offset. He felt penalized for his service and sacrifice. This is a common sentiment among Chapter 61 retirees, and it highlights the need for reform.
Several advocacy groups are pushing for legislative changes to expand eligibility for Concurrent Receipt, particularly for Chapter 61 retirees. These groups argue that all veterans who are medically retired should be entitled to full Concurrent Receipt, regardless of their years of service. The Military Officers Association of America (MOAA) is a leading advocate on this issue, and they provide valuable resources and updates on their website here. They often publish analyses of proposed legislation and provide tools for veterans to contact their elected officials.
The proposed changes aim to eliminate the “years of service” requirement for Chapter 61 retirees, allowing them to receive both their full retirement pay and disability compensation without any reduction. This would provide significant financial relief to veterans who were medically retired before reaching 20 years of service. This would be a positive change to military retirement and disability pay for many veterans.
Anya decided to take action. She contacted her congressional representatives, joined MOAA, and started attending local veterans’ advocacy meetings in Columbus. She even shared her story at a town hall meeting, highlighting the challenges faced by Chapter 61 retirees. Her advocacy efforts, combined with the work of other veterans and advocacy groups, helped to raise awareness of the issue and put pressure on lawmakers to act.
In late 2026, Congress passed legislation that expanded eligibility for Concurrent Receipt to include all Chapter 61 retirees, regardless of their years of service. The new law eliminated the VA offset for these veterans, allowing them to receive both their full retirement pay and disability compensation. For Anya, this meant an additional $800 per month in income, a significant boost to her financial security. This change to military retirement and disability pay made a huge difference in her life.
The passage of this legislation was a victory for veterans like Anya, but it also underscores the importance of staying informed and advocating for your rights. The world of military retirement and disability pay is constantly evolving, and it’s crucial to stay abreast of the latest changes. Don’t assume that you know everything; seek out reliable information and professional guidance when needed. I often tell my clients that understanding these benefits is a marathon, not a sprint.
Anya’s story is a testament to the power of perseverance and advocacy. By taking action and sharing her story, she not only improved her own financial situation but also helped countless other veterans facing similar challenges. She now volunteers regularly at the local VA office near the intersection of Victory Drive and Benning Road, helping other veterans navigate the complex world of military benefits.
What can we learn from Anya’s experience? First, understand the nuances of Concurrent Receipt and how it applies to your specific situation. Second, stay informed about proposed legislative changes to military retirement and disability pay that could affect your benefits. And third, don’t be afraid to advocate for your rights and seek out professional guidance when needed. The complexities of military benefits can be daunting, but with the right information and support, you can navigate them successfully.
Don’t wait to understand your military retirement and disability benefits. Take the time now to research your options, seek professional advice, and advocate for your rights. Your financial security depends on it.
What is the Blended Retirement System (BRS)?
The BRS is a retirement system that combines a defined benefit (pension) with a defined contribution (Thrift Savings Plan or TSP). It requires active enrollment in the TSP to receive government matching contributions, and it applies to service members who entered the military on or after January 1, 2018.
What is Concurrent Receipt?
Concurrent Receipt allows eligible veterans to receive both military retired pay and disability compensation from the VA without a dollar-for-dollar reduction. This is typically achieved through programs like CRDP and CRSC.
Who is eligible for Concurrent Receipt?
Eligibility for Concurrent Receipt generally depends on the veteran’s disability rating and the circumstances of their retirement. Veterans with a disability rating of 50% or higher are typically eligible for CRDP. Combat-related disabilities may qualify for CRSC, regardless of the overall disability rating.
What is Chapter 61 retirement?
Chapter 61 of Title 10, U.S. Code, covers medical retirement for service members who are medically retired due to a disability incurred during service. These retirees often face unique challenges regarding Concurrent Receipt, particularly if they have less than 20 years of service.
Where can I find more information about military retirement and disability pay?
You can find more information on the Department of Veterans Affairs website (VA.gov) and the Department of Defense website. Additionally, organizations like the Military Officers Association of America (MOAA) and the Georgia Department of Veterans Service offer valuable resources and assistance.
