Combat-Related Special Compensation

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As opposed to Concurrent Retirement and Disability Pay (CRDP), Combat Related Special Compensation (CRSC) is tax-free and you must have a combat-related disability to qualify for it. CRSC and CRDP are both programs that offset any money that is subtracted from your retirement pay when you draw VA disability. 

Retirees can't get both CRSC and CRDP, if you qualify for both DFAS will automatically give you the most beneficial benefit.

You may ask why anyone would take CRDP over CRSC, well it isn't unusual for the combat-related rating to be lower than the VA rating, for example you have 30% disability for a bad back caused by wearing body armor in combat, and you have 20% disability for loss of hearing that isn't combat related. The CRDP would pay you at the 50% disability rate while the CRSC would only pay you at the 30% rate.

CRSC Eligibility 

To qualify for CRSC you must:

  • be entitled to and/or receiving military retired pay
  • be rated at least 10 percent  disabled by the VA
  • waive your VA pay from your retired pay
  • file a CRSC application with your Branch of Service

Disabilities that may be considered combat related include injuries incurred as a direct result of:

  • Armed Conflict
  • Hazardous Duty
  • An Instrumentality of War
  • Simulated War

Retroactive Payment 
In addition to monthly CRSC payments, you may be eligible for a retroactive payment.  DFAS will audit your account to determine whether or not you are due retroactive payment. An audit of your account requires researching pay information from both DFAS and VA. 

If you are due any money from DFAS, you will receive it within 30-60 days of receipt of your first CRSC monthly payment. If DFAS finds that you are also due a retroactive payment from the VA, we will forward an audit to the VA. They are responsible for paying any money they may owe you. 

Your retroactive payment date may go back as far as six years from the date the VA awarded compensation for your disability. It can also be limited based on:

  • your overall CRSC start date as awarded by your Branch of Service
  • your Purple Heart eligibility
  • your retirement date
  • your retirement law (disability or non-disability)
  • six-year barring statute

How To Apply For CRSC

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

Click here for Frequently Asked Questions about  Combat Related Special Compensation (CRSC) laws.

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