Combat-Related Special Compensation (CRSC) provides military Retirees a tax-free monthly compensation that is intended to replace some or all of the retired pay that is withheld due to receipt of VA compensation. CRSC is payable for disabilities that are found to be related to combat, including disabilities that were incurred in actual combat, while engaged in hazardous service, in the performance of duty simulating war, training for combat or as a result of an instrumentality of war. The amount of CRSC payable is directly related to the evaluation(s) assigned to combat-related disabilities, but cannot exceed the amount of withheld retired pay. Retirees cannot receive benefits simultaneously under both, CRSC and Concurrent Retirement and Disability Payments (CRDP), programs.[1]
Combat Related Special Compensation (CRSC) is a program that was created for disability and non-disability military retirees with combat-related disabilities. It is a tax-free entitlement that you will be paid each month along with any retired pay you may already be receiving.
To qualify for CRSC you must:
- be entitled to and/or receiving military retired pay
- be rated at least 10 percent by the Department of Veteran’s Affairs (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[2]
Caution: CRSC is computed only on the amount of your disability that is related to combat or preparation for combat. Your VA disability compensation may include other disabilities that were in the line of duty but not related to combat or preparation for combat. Therefore, the amount computed for CRSC may be less than what you receive for VA disability compensation.
DFAS will confirm with you annually if you wish to continue in the CRSC program. For more information, contact DFAS at 800-321-1080.
[1] https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Combat-Related-Special-Compensation-(CRSC)-?serv=124
[2] https://www.dfas.mil/retiredmilitary/disability/crsc/
— EANGUS NATIONAL OFFICE
