Retirement · guide
CRSC: Combat-Related Special Compensation
The tax-free payment that restores part or all of the retired pay waived for VA compensation, for disabilities linked to combat, and how it compares with CRDP.
CRSC or CRDP: which one pays more
Better option
CRDP
| CRDP restores | $1,435.02 |
| CRSC (estimate, tax free) | $795.84 |
| Total each month | $4,035.02 |
Combat-Related Special Compensation is a monthly, tax-free payment for military retirees whose VA disabilities are combat-related, created by 10 U.S.C. 1413a. A disability is combat-related when it is attributable to an injury for which the member received the Purple Heart, or when it was incurred as a direct result of armed conflict, during hazardous service, in the performance of duty under conditions simulating war, or through an instrumentality of war. CRSC pays the VA compensation for the combat-related disabilities, computed as if they were the only ones, but never more than the retired pay the retiree waives for VA compensation. Unlike CRDP, it does not require a 50% rating: a combat-related rating of 10% is enough. It also covers Chapter 61 disability retirees with fewer than 20 years, within a limit tied to their years of service. A retiree must apply to his or her branch, and cannot receive CRSC and CRDP at the same time; DFAS pays the better one. With a combat-related rating of 30% and no dependents, CRSC is $552.47 a month when the waiver is at least that large.
Checked by Radif Partners · Editorial policy · How we calculate
CRSC in five situations
| Situation | Retired pay | Waiver | CRSC (estimate) | CRDP | Paid |
|---|---|---|---|---|---|
| 20 years, 40% total, 30% combat | $2,600 | $796 | $552 | none | CRSC |
| 20 years, 60% total, 40% combat | $2,600 | $1,435 | $796 | $1,435 | CRDP |
| 20 years, 60% total, 60% combat | $2,600 | $1,435 | $1,435 | $1,435 | CRDP |
| Chapter 61 at 70%, 12 years, all combat-related | $1,820 | $1,808 | $768 | none | CRSC |
| 20 years, 100% total, 50% combat | $3,200 | $3,200 | $1,133 | $3,200 | CRDP |
The table shows the logic. At 40% total, CRDP does not exist and CRSC restores the waiver for the combat-related part. At 60%, CRDP restores the whole waiver, so CRSC wins only if it pays more after tax, which happens when the combat-related part is large or when a former spouse would share CRDP. At 100%, CRDP is usually the larger gross amount unless almost all of the rating is combat-related.
How the amount is computed
DFAS takes the VA amount for the combat-related disabilities alone, using the combined rating the branch assigns to them, and compares it with the retired pay waived for VA compensation that month. CRSC is the smaller of the two. For Chapter 61 retirees, a further limit applies: the total of CRSC and the retired pay left after the waiver cannot exceed what the member would have received for longevity, which for members with fewer than 20 years is 2.5% times the years times the retired pay base. A retiree with twelve years and a high disability percentage therefore receives less CRSC than the combat-related VA amount might suggest. The calculator applies the cap of the waiver; the branch and DFAS apply the full rules.
Which disabilities count as combat-related
The branch boards look at the cause of each disability, not at where the member served. A back injury from a vehicle rollover during a combat patrol is combat-related; the same injury from a training accident can qualify as "simulating war" or "hazardous service" depending on the circumstances; hearing loss from weapons fire can count as caused by an instrumentality of war. Disabilities without a documented link to one of the four categories, or to a Purple Heart, are not combat-related even if they are service connected.
The Chapter 61 line of the table, step by step
The fourth line follows a member retired for disability after twelve years, with a retired pay base of $2,600 and a 70% disability percentage, so disability retired pay of $1,820. VA rates the same conditions at 70%, all combat-related. The VA waiver takes almost all of the retired pay. CRSC would equal the VA amount at 70%, but the Chapter 61 rule caps the sum of CRSC and the remaining retired pay at what twelve years of longevity would pay, 2.5% times twelve times the base, $780. The member therefore receives full VA compensation plus a smaller CRSC. Members in this situation are the reason Congress has repeatedly debated extending concurrent receipt to Chapter 61 retirees with fewer than twenty years.
CRSC, SBP and taxes
Because CRSC is tax free, a retiree in a high tax bracket can prefer it to CRDP even when CRDP is a little larger in gross terms. Since 2018, DFAS can deduct Survivor Benefit Plan premiums from CRSC when retired pay is too small to cover them, which used to be a reason some retirees kept CRDP. A former spouse who receives part of retired pay under a court order does not share in CRSC, which is another frequent factor in the choice.
Retroactive pay
CRSC can be paid back to June 1, 2003, for months in which all conditions were met, limited by the retirement date and, for disability retirees with fewer than 20 years, to January 1, 2008. DFAS audits the account when the branch approves the claim and pays any amount due; if VA also owes money, DFAS sends the audit to VA.
The CRDP calculator explains the other program, and the VA disability calculator gives the total for a retiree with dependents.