Send the following letter to your elected officials --

I urge you to sponsor legislation that would accelerate the 10-year phase in schedule for Concurrent Retirement Disability Pay (CRDP) as authorized by the 2004 National Defense Authorization Act (NDAA).

CRDP is a partial restoration of retirement pay previously offset by VA disability compensation. This partial restoration included restoration of retired pay for approximately 102,000 disabled military retirees with a disability rating of 50% or higher, to be phased in over a 10-year period beginning January 1, 2004.

The first year (2004) provided for payment of a fixed amount based on the VA disability rating. Starting with 10% of the remaining balance of the offset in 2005, the succeeding years progressively restore an additional 10% of the remaining balance until in 2014, 100% of the remaining balance is to be restored.

The 2005 NDAA removed those approximately 17,000 rated 100% service connected from the 10-year phase in schedule as they were compensated at the full amount effective January 1, 2005.

The following table is an extract of a more complete tabulation of the restoration schedule for CRDP based on the VA disability ratings from 50 to 100% inclusive. The percentages of the amounts restored and the annual maximum increments are weighted averages based on the number of individuals at each disability rating. Even with casual study of this extracted information several observations can be readily made:
 

Summary of CRDP Phase In (2005 Constant Dollars)
102,000 Military Retirees with VA Disability Ratings
       Year %Restored  Annual Total  Wtd Avg
Fixed  2004   25.2%    $28,606,700   $278.63
10%RB  2005   32.7%     $8,691,149    $84.65
20%RB  2006   46.1%    $15,644,068   $152.37
30%RB  2007   62.3%    $18,772,881   $182.85
40%RB  2008   77.4%    $17,521,356   $170.66
50%RB  2009   88.7%    $13,141,017   $127.99
60%RB  2010   95.5%     $7,884,610    $76.80
70%RB  2011   98.6%     $3,679,485    $35.84
80%RB  2012   99.7%     $1,261,538    $12.29
90%RB  2013  100.0%       $283,846     $2.76
100%RB 2014  100.0%        $31,538     $0.31
%RB = Percent of Remaining Offset Balance   

If you want a copy of the complete table, please request same from Charles Revie legislative@usdr.org and provide email address or fax number.

Observation #1 – Except for the actual dollar amounts, inclusion/exclusion of the 100% disability has minimal impact on the percentage of offset restored schedule. Unless specifically noted, the numerics used for discussion are based on the original 2004 NDAA schedule.

Observation #2 – For all disability ratings, between 2005 and 2007 the annual increment increases to maximum in 2007; thereafter the annual increment decreases to less than $1 in 2014. In 2007 the average is 62% of full restoration. The remaining 38% is spread across 7 years.

Observation #3 – In 2010, the average restoration is 95% of full restoration, leaving a remaining balance of less than 5% to be distributed over the remaining 4 years of the schedule. The percentage decrease from 2009 to 2010 is 6.9%; from 2010 to 2011 the decrease is 3.1%. 2011 to 2012 is 1.1%, etc. One is reminded that average rate of annual inflation exceeds 3+ percent.

Observation #4 – in 2014, the total dollars to be paid to all 102,000 involved is but a mere $31,538 ($0.31/month). Per the schedule of the 2005 NDAA, payments to 85,000 retirees would amount to $22,127 ($0.26/month). Regardless of schedule, if CRDP payments were mailed First Class to the recipients, this would not cover cost of postage!

Observation #5 – It is obvious that the last several years of this schedule do not represent substantial savings to the Government and do not represent substantial benefit to the recipient. Question now becomes that of determining the cross over point between cost avoidance to the Government and benefit to the recipient. Several hasty criteria come to mind –

     a. When 5% or less of the total amount to be restored remains. This would be 2010 with 4.5% remaining.
     b. When the difference between the total amounts restored drops below 5%. This would be 2011 with a 3.1% change from 2010.
     c. When the weighted average of the dollar amount from one year to the next is 50% or less. This would be 2011 at 47% of 2010.

Observation #6 – The preceding observation is tacitly confirmed by the fact that the 2006 NDAA accelerates to Oct 1, 2009, the full restoration of those designated Individually Unemployable (IU) and paid at 100% by the VA (but not by CDRP). Note that termination in 2009 with 11.3% balance remaining effectively modifies the already suggested 5% criteria to 10%.

It is quite obvious that continuation of the CRDP phase in beyond 2009 or 2010 represents a transition from cost avoidance to a wasting of dollars to parcel out ever decreasing parsimonious annual benefits.

Again, I urge your sponsorship of legislation that would stop the obvious waste and accelerate the 10-year phase in schedule of Concurrent Retirement Disability Pay.