Your father-in-law is eligible to receive both his full military retirement pay and his full VA disability compensation without a waiver due to **Concurrent Retirement and Disability Pay (CRDP)**, which automatically restores his retired pay dollar-for-dollar against his VA offset. The initial VA letter stating he must waive retired pay is a standard notification referencing the long-standing prohibition on "dual receipt" under 38 U.S.C. § 5304, but this is mitigated by CRDP for eligible retirees. To qualify automatically for CRDP under 38 CFR 3.750, a retiree must have a VA disability rating of 50% or higher and have completed 20 or more years of qualifying service, which his 30-year Air Guard career satisfies. His 100% service-connected rating, likely under a diagnostic code such as those in 38 CFR 4.130 for mental disorders or others for physical conditions, ensures full restoration. No application is needed for CRDP; the Defense Finance and Accounting Service (DFAS) should automatically enroll him upon verification of his VA rating. His actionable next steps are to 1) confirm with DFAS that his CRDP enrollment is processing, 2) verify his retired pay statements show the CRDP restoration, and 3) if any discrepancies arise, contact the VA/DFAS joint services support line. Note that if his retirement was based on a National Guard medical retirement rather than length of service, **Combat-Related Special Compensation (CRSC)** could be an alternative path, requiring a separate application to his service branch. *This information is for educational purposes regarding VA claims processes and is not legal, financial, or medical advice.*
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