CRSC vs. CRDP: Which One Pays a Military Retiree More
How Combat-Related Special Compensation and Concurrent Retirement and Disability Pay work, who qualifies for each, why you can't get both, and how the January open season works.
Not financial or legal advice. Educational only. DFAS and your branch make the final call. A VA-accredited representative can review your own case for free.
If you retired from the military and you also have a VA disability rating, you've probably hit the "VA offset." By default, your retired pay is cut dollar-for-dollar by the VA compensation you receive. Two programs give some or all of that money back: CRSC and CRDP. You can qualify for both, but you can only be paid by one at a time.
The offset in one paragraph
Military retired pay and VA disability compensation used to be treated as the same money. If you got $1,000 a month from VA, your retired pay dropped by $1,000. Your VA pay is not affected by any of this. CRSC and CRDP only deal with the retired pay side.
CRSC: Combat-Related Special Compensation
Per VA, CRSC is a tax-free monthly payment for retirees with combat-related disabilities. You may be eligible if all of these are true:
- You're retired from the military (active duty or Reserve/Guard retirement), and
- You have a VA rating of at least 10%, and
- Your retired pay is reduced by your VA disability pay, and
- You have 20 or more years of service, or a medical (Chapter 61) retirement at 30% or more, or you retired under TERA, or were placed on the TDRL or PDRL.
The disability has to be combat-related. The categories are armed conflict, hazardous duty, conditions simulating war (training), an instrumentality of war, or a disability tied to a Purple Heart.
How to apply. CRSC isn't automatic. You apply to your own branch, not VA, using DD Form 2860, with evidence that links each condition to a combat-related event. VA lists a 6-year limit on back pay, so don't sit on it.
Coast Guard retirees apply to Commander (PSC-PSD-MED), Personnel Service Center, Attn: CRSC, 2703 Martin Luther King Jr. Ave SE, Washington, DC 20593-7200. The email address is [email protected]. Check the VA CRSC page for the other branches' addresses.
CRDP: Concurrent Retirement and Disability Pay
CRDP restores retired pay that the VA offset took away. Per DFAS:
- You generally need a VA rating of 50% or higher and to be entitled to both retired pay and VA compensation.
- It's automatic. No application. DFAS and VA share the data.
- Chapter 61 (medical) retirees face extra limits under 10 U.S.C. 1414(b). Read the DFAS CRDP page if that's you.
Side by side
| CRSC | CRDP | |
|---|---|---|
| Minimum VA rating | 10% | 50% |
| Disability must be combat-related? | Yes | No |
| How you get it | Apply to your branch (DD 2860) | Automatic |
| Taxes | Not taxable | Taxable, like retired pay |
| How it's paid | Separate payment | Added back into retired pay |
| Divisible with a former spouse? | Not subject to USFSPA | Raises disposable retired pay, which can raise a former spouse's share |
You can't get both: the open season
If you qualify for both, DFAS pays you one. Per the DFAS FAQ, you can switch programs during the annual open season in January. If you do nothing, you stay in the program you're in. Army benefits guidance says DFAS will place you in CRSC if it pays more. Even so, check every year. A rating change or a new CRSC approval can flip which one comes out ahead.
How to compare. Don't just compare gross amounts. CRSC is tax-free and CRDP is taxed. If you pay a former spouse a share of retired pay, CRDP may raise that share and CRSC doesn't. Look at what lands in your account after taxes and any division.
Common mistakes
- Assuming 100% gets you everything automatically. CRDP is automatic at 50% or higher. CRSC never is. You have to apply.
- Skipping CRSC because you weren't "in combat." Training accidents and hazardous duty can count. So can injuries from military equipment.
- Never revisiting the choice. Every January open season is a chance to switch.
Related
Sources
- VA, Combat-Related Special Compensation (CRSC) (accessed November 2, 2026)
- DFAS, Concurrent Retirement and Disability Pay (CRDP) (accessed November 2, 2026)
- DFAS, CRDP and CRSC frequently asked questions (accessed November 2, 2026)
- 10 U.S.C. 1413a (CRSC) (accessed November 2, 2026)
- 10 U.S.C. 1414 (CRDP) (accessed November 2, 2026)
- Congressional Research Service, R40589: Concurrent Receipt (accessed November 2, 2026)