How to get CRSC or CRDP — recovering the military retired pay the VA offset takes away
A military retiree who also receives VA disability compensation normally gives up (waives) retired pay equal to the VA payment. Two programs restore it. Concurrent Retirement and Disability Pay (CRDP) is automatic for retirees with 20 years of service and a VA rating of 50% or more, and is taxable retired pay. Combat-Related Special Compensation (CRSC) is a tax-free payment for disabilities the branch of service finds combat-related (armed conflict, hazardous duty, an instrumentality of war, or simulated war); it requires a VA rating of at least 10% and an application to your branch on DD Form 2860. You cannot receive both at once; DFAS picks the better one in your first year and you choose in later open seasons.
What you'll need
- DD Form 2860 (Claim for Combat-Related Special Compensation) for a first application; a reconsideration form from your branch for new conditions
- Retirement orders, or your 20-year letter / statement of service if you are a reservist
- Your VA rating decision(s) and relevant pages of your service or VA medical records
- Purple Heart citation or other award documents, if any
- DD-214
Step-by-step
Step 1: CRDP — automatic if you qualify
CRDP applies if you retired with 20 years of active or reserve service, receive retired pay that is offset by VA payments, and have a VA rating of 50% or more. Reservists must be eligible to receive retired pay (normally at 60). There is no application — DFAS restores the offset in your retired pay. CRDP is taxable like the rest of your retired pay, and retroactive entitlement cannot go back before January 1, 2004.
Reference: https://www.dfas.mil/RetiredMilitary/disability/comparison/
Step 2: CRSC — who qualifies
To qualify for CRSC you must be entitled to and/or receiving military retired pay, be rated at least 10% by VA, have waived VA pay from your retired pay, and file an application with your branch of service. The branch decides which of your rated disabilities are combat-related: incurred as a direct result of armed conflict, hazardous duty, an instrumentality of war, or simulated war. Reservists must be at least 60 or retired under TERA. Medical (Chapter 61) retirees with fewer than 20 years can qualify for CRSC. CRSC is not taxed.
Reference: https://www.dfas.mil/RetiredMilitary/disability/crsc/
Step 3: Apply to your branch, not to DFAS or VA
First-time applicants complete DD Form 2860 and send copies (not originals) of supporting documents. Army: U.S. Army Human Resources Command, ATTN: CRSC Division, 1600 Spearhead Division Avenue, Fort Knox, KY 40122 (866-281-3254, crsc.info@us.army.mil). Navy and Marine Corps: Secretary of the Navy Council of Review Boards, Combat Related Special Compensation, 720 Kennon Street SE, Suite 309, Washington Navy Yard, DC 20374-5023 (877-366-2772, CRSC@navy.mil). Air Force and Space Force: HQ AFPC/DPFDC (CRSC), 550 C St West, JBSA Randolph, TX 78150, or submit through myFSS. The branch notifies you in writing and sends DFAS a copy of an approval.
Reference: https://www.dfas.mil/RetiredMilitary/disability/Apply-for-CRSC/
Step 4: Adding conditions later
If VA later rates more disabilities you believe are combat-related — including conditions VA added for Agent Orange exposure such as ischemic heart disease and Parkinson's disease — request a reconsideration application from your branch rather than filing a new DD 2860.
Step 5: Payment, retroactive pay and the CRSC/CRDP choice
DFAS pays CRSC monthly to the same account as your retired pay and audits your account for retroactive pay, which may go back as far as June 1, 2003 depending on your CRSC start date, Purple Heart eligibility, retirement date and retirement law; disability retirees with fewer than 20 years are limited to January 1, 2008. If part of the back pay is owed by VA, DFAS forwards the audit to VA. If you qualify for both CRSC and CRDP, DFAS applies the one with the higher gross amount in the first year and sends you an election form (return it within 45 days to switch); after that you choose during the annual open season, usually in January.
Reference: https://www.dfas.mil/RetiredMilitary/disability/comparison/
Critical tips
- CRSC is tax-free; CRDP is taxable retired pay. The higher gross amount is not always the better net amount — compare both at open season.
- Quality beats quantity: your branch decides from what you send, so include the VA rating pages and service records that tie each condition to combat, hazardous duty or an instrumentality of war.
- Reservists: CRSC requires entitlement to retired pay, so before age 60 (or TERA) there is no offset to recover.
- Questions about eligibility or your account: DFAS Retired & Annuitant Pay, 800-321-1080 (Mon–Fri, 8:30 a.m.–4:30 p.m. ET).
- A county veterans service officer can help with the application for free: warriorsfund.org/find-cvso.
- In crisis: dial 988 then press 1, or text 838255.