Back Payments Set For Combat-Related Retirees

The departments of Defense and Veterans Affairs expect to be disbursing some $500 million in back payments to as many as 120,000 military retirees who are receiving Combat-Related Special Compensation (CRSC) or Concurrent Retirement and Disability Pay (CRDP). The payments could arrive significantly earlier for some retirees than originally announced because the calculations are being computerized. Individual amounts could average between $4,000 and $5,000, but will vary because of differences in rank, disability amount, and the length of the retroactive period. VA is expected to fund 60 percent of the $500 million and DoD the remaining 40 percent. Some retirees could get payments from both the VA and DFAS (which will process DoD’s payments), but they should receive a letter of explanation from the VA.