Understanding Concurrent Receipt in Personal Injury Cases
Military service members injured in accidents often receive both VA disability compensation and personal injury settlements, creating confusion about “concurrent receipt” and whether accepting one reduces the other. Understanding how VA disability, military retirement, and personal injury recoveries interact prevents costly mistakes that reduce your total compensation.
At the Law Office of William Bruzzo, our experienced Orange County personal injury attorney team helps service members navigate concurrent receipt issues. As a former Major in the United States Marine Corps Reserve, we understand how Combat-Related Special Compensation (CRSC), Concurrent Retirement and Disability Pay (CRDP), and California’s collateral source rules protect your rights.
What Concurrent Receipt Means for Military Personnel
Concurrent receipt refers to receiving both military retirement pay and VA disability compensation simultaneously. Historically, disabled veterans had to waive a portion of their retirement pay to receive VA disability; you couldn’t receive both “concurrently.”
The National Defense Authorization Act changed this, allowing many disabled retirees to receive both through Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC). However, confusion persists about whether personal injury settlements affect these benefits.
VA Disability Compensation and Personal Injury Claims
How VA Disability Works
The Department of Veterans Affairs rates service-connected disabilities from 0 percent to 100 percent in 10 percent increments. Compensation ranges from $0 for 0 percent ratings to over $3,700 monthly for 100 percent disabled veterans with dependents.
VA disability compensates for conditions caused or worsened by military service, even if civilian negligence also contributed. For example, if a service-connected knee injury worsens due to a car accident, you may receive VA disability for the original condition and pursue a personal injury claim against the negligent party.
VA Disability Doesn’t Reduce Personal Injury Recovery
California’s collateral source rule prevents defendants from reducing your personal injury settlement because you receive VA disability. The at-fault driver cannot argue, “The VA already pays you $2,000 monthly for your injuries, so I don’t owe you anything.”
VA disability compensates for service-connected conditions, while personal injury claims compensate for losses caused by the defendant’s negligence. According to California Civil Code Section 3333.1, defendants cannot receive credit for collateral source benefits. An experienced Orange County personal injury lawyer ensures your full recovery.
Concurrent Retirement and Disability Pay (CRDP)
CRDP allows military retirees with VA disability ratings of 50 percent or higher to receive both full retirement pay and VA disability compensation without offset. Before CRDP, retirees had to waive retirement pay dollar-for-dollar to receive VA disability.
For a retired E-7 with 20 years receiving $2,500 monthly retirement and rated 60 percent disabled receiving $1,500 monthly from VA, CRDP means receiving $4,000 monthly total instead of choosing between them.
CRDP eligibility requires:
- Retired from military service with 20+ years
- VA disability rating of 50 percent or higher for service-connected conditions
- Eligible for both military retirement and VA disability
Personal injury settlements do not affect CRDP eligibility or amounts. An experienced Orange County personal injury attorney can help structure settlements to protect your CRDP payments.
Combat-Related Special Compensation (CRSC)
Combat-Related Special Compensation, or CRSC, provides additional financial support to military retirees who have service-connected disabilities resulting from combat or combat-related activities. CRSC is tax-free and does not reduce based on any VA disability payments you receive. Eligibility for CRSC requires that the service member is retired from military service, has a VA disability rating for combat-related conditions, and is entitled to VA compensation.
Combat-related conditions can include injuries sustained in armed conflict, hazardous duty assignments, training exercises that simulate war, or exposure to dangerous military equipment and instruments of war. Importantly, any personal injury settlements from civilian negligence do not affect CRSC eligibility or amounts, ensuring service members retain full compensation from both sources.
Medical Separation and VA Disability
Service members who are medically separated before reaching 20 years of military service do not receive military retirement pay, but they may still qualify for VA disability compensation for service-connected injuries. These veterans can pursue personal injury claims against negligent parties without negatively impacting their VA disability benefits.
Even if a civilian accident ends a service member’s military career, the responsible party remains liable for the financial losses caused by that negligence, including lost retirement benefits that the member would have earned. VA disability benefits compensate for the service-connected condition itself, not for the damages caused by the defendant, which means pursuing a personal injury claim does not reduce your VA disability entitlement.
How Personal Injury Settlements Affect VA Claims
Personal injury settlements do not prevent you from applying for VA disability benefits, nor do they reduce existing VA payments. It is important to understand, however, that you cannot receive compensation twice for the exact same loss, settlements, and VA disability must address separate harms.
At the Law Office of William Bruzzo, our experienced Orange County personal injury lawyer team carefully structures settlements to avoid any risk of double recovery while ensuring your right to both VA disability and personal injury compensation is fully protected. We coordinate with medical and legal professionals to document how the civilian accident caused damages separate from your service-connected disabilities.
Additionally, TRICARE may hold automatic liens under 42 U.S.C. § 2651 for accident-related medical treatment. These liens must be addressed in your settlement, but they do not interfere with concurrent receipt of military retirement pay and VA disability. Our team guides service members through these to protect all benefits and maximize total recovery.
Proving Military Career Losses Without Affecting VA Benefits
When civilian negligence forces medical separation, your personal injury claim includes lost military career damages. Defendants argue you’re receiving VA disability, so your losses aren’t as great.
We prove these losses are separate: VA disability compensates for service-connected medical conditions, personal injury claims compensate for the defendant’s negligence ending your career, and you would have received BOTH a full military career AND VA disability but for the defendant.
We advise clients to apply for VA disability before settling personal injury claims. This establishes service connection and creates a VA disability rating that settlements won’t affect.
Contact an Orange County Personal Injury Lawyer Today
Understanding concurrent receipt is important to prevent accepting settlement agreements that inadvertently reduce VA disability or military retirement benefits. At the Law Office of William Bruzzo, our experienced Orange County personal injury lawyer team helps protect service members’ concurrent receipt rights while maximizing personal injury recoveries. With over 30 years of legal experience, we know how to structure claims to safeguard your benefits.
Contact us online for a free consultation. We’ll review your VA disability, analyze your concurrent receipt situation, and ensure your personal injury claim protects all your entitlements.
