Combat-Related Special Compensation (CRSC) provides tax-free monthly payments to eligible retired Veterans with combat-related injuries. It restores military retired pay that is offset when a military retiree accepts compensation from the U.S. Department of Veterans Affairs (VA) for a disability or condition that can be attributed to a combat-related event. This allows eligible retirees to receive both retirement pay (that is equal to or less than their length of service) and their VA disability compensation (if the injury is combat-related) at the same time.
The following are some quick notes on CRSC:
For additional information on CRSC, visit https://www.hrc.army.mil/tagd/crsc . If you have issues regarding CRSC claims, approvals or denials, contact the CRSC office below:
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
Concurrent Retirement Disability Pay (CRDP) allows military retirees with service-connected disabilities to receive both military retired pay and VA compensation. This was prohibited until the CRDP program began on January 1, 2004. CRDP is a "phase in" of benefits that gradually restores a retiree's VA disability offset. This means that an eligible retiree's retired pay will gradually increase each year until the phase in is complete effective January 2014.
CRDP is taxed in the same manner as retired pay, and it is normally considered taxable income unless the retirement orders list it as combat-related. No application is required, and eligible retirees receive CRDP automatically.
The following are some quick notes on CRDP:
For additional information on CRDP, visit the DFAS website .
CRDP covers all “service-related” disabilities, and the retiree’s disability must be rated by the VA at 50%. Full compensation is phased in over a period of ten years and is taxed. CRSC covers all "combat-related" disabilities that have a VA rating of 10% or higher. Full compensation begins with the first payment and is tax free. DFAS calculates the payments for both programs.
No, the payment a retired member receives from the military will be waived by an amount equal to the VA compensation.
You are not entitled to CRDP unless you have 20 years of active service and are rated 50 percent or over.
The CRSC effective date is based on the date of retirement and VA waiver (military retired pay is reduced by VA disability payments). For example, if a Soldier retires on March 05, 2008 and the VA waiver is taken out on April 1, 2008, the CRSC entitlement effective date will be April 1, 2008.