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CRSC for TERA and Chapter 61 Retirees

The FiscalYear 2008 NDAA (National Defense Authorization Act), signed by the President in early 2008, revised eligibility requirements for Combat Related Special Compensation (CRSC). All military retirees, other than some former reserve members with physical disabilities not incurred in the line of duty, are now eligible for CRSC compensation.  These newly eligible veterans are mainly Chapter 61 (medical retirees) and Temporary Early Retirement Authority (TERA) retirees.

In order to be fully eligible for CRSC, the retiree must meet the following criteria:

  • Be in receipt of military retainer or retired pay
  • Be rated by the VA for service connected disabilities
  • Waive retired pay in order to receive VA disability payments.

Retirees who have waived their retired pay in order to include their military service as part of a civil service retirement program are not eligible for CRSC.

At this time TERA retirees are not eligible for the Concurrent Retirement and Disability Payments (CRDP) program.  CRDP is only open to retirees (including Chapter 61 retireea) with 20 or more years of service who have VA rated disabilities that total 50% or more.

CRSC Facts:
CRSC came into effect June 2003 and was expanded in January 2004.  The program is designed to restore the retired pay of veterans with Combat Related Disabilities who have waived a portion of their pay in order to receive compensation for their disabilities.  This most recent revision to the CRSC program is effective 01 Jan 2008.  Compensation for Chapter 61 and TERA retirees, eligible under the FY 08 revision and determined to have combat-related disabilities, will be paid retroactively back to 01 Jan 2008 or the VA disability effective date, whichever is more recent.

CRSC is specifically for military retirees with Combat Related disabilities. Combat related determinations are decided by the branch of service the member retired from, not by the VA or DFAS.  The retiree must apply using a standard CRSC application form (Form DD2260).  The "burden of proof" is on the applicant.  Documents necessary to support a combat-related claim normally include the member's DD-214, VA Rating Decisions, Service Medical Records (SMR's), the PEB Notice of Decision letter, and service personnel records.  CRSC is not taxed and is not subject to division with a former spouse.

Applying for CRSC:
In order for a CRSC application or claim to be approved, there must be a direct causal relationship between the armed conflict or training exercise that simulates war and the resulting disability.  Slips, trips, and falls as well as physical training are not combat-related disabilities.  The fact that a veteran incurred a disability during a period of war or simulated war; or in an area of armed or simulated conflict, or while participating in combat or simulated combat operations; is not sufficient to support a combat-related determination. When the VA rates your diagnoses as service connected, this means they were incurred during your military career; not that they are combat-related.  The VA is not chartered nor authorized to make combat-related determinations. Only the CRSC Board for each branch of service is authorized to make combat-related determinations.
Submission for reconsideration of a CRSC claim is appropriate under the following conditions:

  • The retiree disagrees with the CRSC Board's decision
  • The retiree is rated by the VA for a new disability that he/she believes is Combat Related
  • The retiree has an increase in an already approved combat-related disability or are rated as Individually Unemployable

Retirees can download the CRSC claim form DD 2860.

For more information on how to apply contact your parent military service branches CRSC website:

    CRSC Program Office
    550 C Street West Ste 6
    Randolph AFB TX 78150-4708
    Phone: 800-525-0102
  • ARMY
    Department of the Army
    U.S. Army Human Resources Command
    ATTN: AHRC-PDR-C (CRSC), Dept. 420
    1600 Spearhead Division Avenue
    Fort Knox, KY 40122-5402
    Phone: 888-276-9471
    USCG PSC Commander (CG-PSC-PSD-de)
    Mailstop 7200
    4200 Wilson Boulevard
    Arlington, VA 22203-7200
    Phone: 800-772-8274
    Department of the Navy
    Secretary of the Navy Council of Review Boards
    Attn: Combat-Related Special Compensation Branch
    720 Kennon Street SE, Suite 309
    Washington Navy Yard, DC 20374-5023
    Phone: 877-366-2772
    Website: main page.aspx


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