Military Advantage

CRDP and CRSC Open Season


SOURCE: The Defense Accounting and Finance Service (DFAS)

Military retirees who are eligible for both Concurrent Retirement and Disability Pay (CRDP) and Combat Related Special Compensation (CRSC) can choose which entitlement they prefer to receive during Open Season, which ends January 31.

If you are eligible to participate in Open Season, you will receive a letter detailing the benefits of each entitlement by mail this month. Along with the letter, you'll receive an Open Season Election Form, which allows you to choose the type of payment you wish to receive. Federal law prohibits receiving both CRDP and CRSC.

You might base your decision on the difference in monetary value or on the affect each entitlement will have on your taxable income.  You can read Frequently Asked Questions about the CRSC and CRDP programs to learn more. In addition, you can view a chart which explains the differences between CRDP and CRSC.

When you review the comparison table, you'll notice several differences between CRDP and CRSC. Before making your decision, you may want to consider how these differences affect you. For instance:

  • CRDP is subject to federal taxes; CRSC is not.
  • CRDP is subject to division with a former spouse; CRSC is not.
  • SBP premiums can be deducted from CRDP, but not CRSC.
If you have questions about how your election will affect your taxes, you should contact your financial advisor or a tax professional.

If you feel the information reflected on your form is incorrect, you may contact our Customer Care Center at 800-321-1080 from 7 a.m. to 7:30 p.m. EST, Monday through Friday.  Because Monday is our busiest day, we recommend calling Tuesday through Friday for quicker service.

Forms should only be submitted if you are making a change. Envelopes must be postmarked by Jan. 31. If postmarked after this date, the form will not be processed and the current payments will continue.

Show Full Article

Related Topics

Military Advantage