Combat-Related Special Compensation (CRSC) and Concurrent Retirement Disability Pay (CRDP) are programs passed by Congress to allow eligible military retirees to receive additional monthly entitlements. The purpose of these entitlements is to recover some or all of the waived retired pay that was exchanged for VA disability compensation.

The Defense Finance and Accounting Service and the Department of Veterans Affairs manage the CRDP/CRSC Processing program (formerly known as VA Retro) to pay eligible military retirees any retroactive CRSC, CRDP and/or DVA disability compensation they are owed.

It is important to note that Retirees cannot receive both CRSC and CRDP. DFAS determines the most advantageous payment for retirees who qualify for both; however, retirees are offered an annual open season (or election period) to change their payment from the automatic default if desired. Open season usually takes place in December and January.

To determine which program might be better for you, please review the CRSC/CRDP comparison table below.

	CRSC	CRDP
Qualified Injury	combat-linked disabilities	service-connected disabilities
Classification	Special Compensation (not subject to rules and regulations governing military retired pay)	Military retired pay (subject to rules and regulations governing military retired pay)
Full Concurrent Receipt?	Yes - Retirees can receive either partial or full concurrent receipt of their military retirement pay and VA disability compensation	No - Restoration of pay is phased in over 10 years (from 2004 to 2014)
Claim Process	Application required (Click here for instructions)	Automatic
Eligibility	Eligible claimants: Are retired with 20 years Active or Reserve Duty* Are receiving retired pay Have a 10% + VA disability rating Have at least one combat-related disability *See Section 641 of the National Defense Authorization Act (NDAA), signed into law in 2008, which expanded the CRSC eligibility defininton	Eligible claimants: Are retired with 20 years Active or Reserve Duty* Are receiving retired pay (that is offset by Va payments) Have a 50% + VA disability rating Reservists and national guardsmen must be at least 60 years old *See Section 642 of the National Defense Authorization Act (NDAA), signed into law in 2008, which expanded the CRDP eligibility definition
Retroactive Entitlement	Beginning June 1, 2003, for any month in which all eligibility requirements*are satisfied *Note the effective date for those who qualify based upon the expanded authority under the NDAA 2008, is either January 1, 2008, or the date of the qualifying VA disability award, whichever is later	Beginning January 1, 2004, for any month in which all eligibility requirements* are satisfied Note the effective date for those who qualify based upon the expanded authority under the NDAA 2008, is retroactive to January 1, 2005
Federal Taxation	Tax Free	Taxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate
Issue of Payment	CRSC payment are deposited to the same account where you receive your retired pay. In the event your VA disability compensation offset exceeds your retired pay, it will be deposited to the account where you receive VA payment	CRDP payment are issued by DFAS and direct deposited or mailed based on your current retired pay information. CRDP payment will reflect as a decrease in the VA waiver deduction on your retired Account Statement; however, you will continue to receive the same amount from the DVA
Subject to division of retired pay with a former spouse (Uniform Services Former Spouse Protection Act (USFSPA))?	No	Yes
Subject to Collection / Garnishment	Yes	Yes
SBP (Survivor Benefit Plan)	No	Yes

A retiree may be due funds from DFAS, the DVA or from both agencies. DFAS and the DVA remain in communication with each other to successfully recognize and process CRDP and CRSC accounts.

For more information, call toll free at 1-877-327-4457. This phone number is exclusively for CRDP and CRSC related questions. Customer service representatives are available Monday through Friday from 8 a.m. to 4:30 p.m. (ET). Questions concerning disability ratings or payments due from the VA should be directed to the Department of Veterans' Affairs at 1-800-827-1000.